The Value of a Loan Pre-Approval for your Las Vegas Home Shopping
Pre-Approval vs. Pre-Qualification: What is the difference?
For many new Las Vegas homebuyers and their Real Estate Agents, the terms pre-qualification and pre-approval seem interchangeable. But they are not — and the distinction is an important one.
When a homebuyer is pre-qualified, the lender performs a quick check to determine generally how large a home loan the buyer can afford. Essentially, when a buyer is pre-qualified, the lender is saying it would most likely approve the buyer for "x" amount.
Pre-approval goes much deeper. In order to issue a pre-approval, your Las Vegas lender examines and verifies the borrower's debt, income, savings, assets and credit report to ensure the borrower can repay the loan amount. Where pre-qualification is a sort of educated guesstimate of the buyer's purchasing power, pre-approval says the prospective lender would most likely be able to approve the buyer for the loan.
This is particularly useful when home shopping for multiple reasons. To begin with, pre-approval instantly lets you know what your actual budget is. Knowing what you can afford from the outset will help you and your Las Vegas real estate agent better focus your efforts.
Being pre-approved also provides you with an advantageous position over other buyers, because pre-approval assures the seller that you have access to the loan necessary to back your offer. Your Las Vegas lender will provide you with a letter or certificate demonstrating that you are pre-approved for a certain amount of money, which you can provide as part of your offer.
Would you, a relative, a friend or a client like to learn more or get pre-approved for a home loan at no cost? Please contact me using the information provided below and I would be happy to help you.