PRE-QUALIFICATION VS PRE-APPROVAL
PRE-QUALIFICATION VS PRE-APPROVALPre-approvals will help identify any potential credit issues you may be unaware of. This will allow you time to resolve any issues before you find that special home.
Pre-qualification vs Pre-Approval
Most people. including lenders, do not know the difference between a pre-qualification and a pre-approval. A A pre-qualification is more like a prediction of what you can borrow. For a pre-approval, the lender will require you to provide certain information and documents. They will also pull a tri-merge credit report. The lender will then provide you with a written commitment of the maximum amount they can lend you.
Benefits of Getting Pre-approved
- Helps you narrow your search to neighborhoods and homes you can afford. This helps eliminate the stress and disappointment of falling in love with a house you can't afford.
- Real Estate Agents like working with buyers who are pre-approved as it enables them to know exactly where to focus their search efforts, and help you find your dream home faster.
- Pre-approvals will help identify any potential credit issues you may be unaware of. This will allow you time to resolve the issues before you find that special home and go under contract.
- Sellers are more likely to accept your offer over others when they know you can afford the home.