Getting pre-approved for a home loan is one of the most important things to do before you start searching for a house or condo. While you have probably spent a great deal of time imagining our dream home; you probably have not researched the differences between being pre-qualified verse being pre-approved for financing.
A home loan is really one of the critical pieces of the home buying process.
Get it done first. It will end up saving you hours of time searching for a home online. You will know how much you can afford to purchase and what your monthly payments will be before making an offer to buy.
Lending has changed in the past few years. Wow…unbelievable changes. So, taking this step is the best financial move you could make.
Should You Be Pre-Qualified or Pre-Approved?
- Pre-Qualification letters are given as informal and tentative approvals for buyers; however, they would NOT have verified the accuracy of your information.
- Pre-Approval letters are formal agreements and offer buyers’ a guarantee of loan approval for a specific amount. The financial institution issuing such a letter may or may not charge for this service.
They will verify credit history, employment status, assets and liabilities to help determine the amount of credit they are able to offer. If you are a serious buyer, this is the suggested “pre” letter to obtain FIRST before you view homes for sale.
- Getting Pre-Approved for a Loan today and then you have an advantage over other home buyers that are just “pre-qualified”.