GETTING PRE-QUALIFIED FOR A HOME LOAN VS. GETTING PRE-APPROVED

LOAN PRE-QUALIFICATION

GETTING PRE-QUALIFIED FOR A HOME LOAN is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the internet. The pre-qualified amount is based solely on the information you provide. In most markets,pre-qualified buyers usually hold little clout compared to pre-approved buyers due to the fact that the information given during the pre-qualification process is not thoroughly investigated and therefore may be unreliable. Where a pre-approved buyer is actually approved for a loan of a certain amount, a pre-qualified buyer is only told that they might be approved for a certain amount.

LOAN PRE-APPROVAL

GETTING PRE-APPROVED is a much more involved. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being pre-approved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You cansee how being pre-approved would be more attractive to a Seller than just being pre-qualified.

LET US HELP YOU

We have worked with many excellent, local lenders and would be happy to refer you to a few that you can talk with and interview about their services.We strongly recommend that you not rely on an internet based lender as we have found them to be inconsistent and often times not timely in their performance.

Home loan pre-qualification vs. pre-approval.

The following links will provide valuable information on the home buying process:

    • CLOSING COSTS – Closing costs are the fees and expenses associated with finalizing a real estate transaction, typically including loan origination fees, appraisal fees, and title insurance.
    • PROPERTY TAXES – Property taxes are assessed by local governments based on the value of a property and are used to fund public services such as schools, roads, and emergency services.
    • BUYER DO’S AND DON’TS – Advice for buyers on getting pre-approved for a mortgage, researching neighborhoods thoroughly, and more, while covering things to avoid, such as making major purchases before closing and skipping the home inspection.
    • CONSIDER YOUR BUYING OPTIONS – When considering your buying options, Dore and Geoff Baker encourage you to explore different neighborhoods and property types to find the best fit for your needs, ensuring you make a well-informed decision.
    • MAKING AN OFFER – When it comes to making an offer on a home, Dore and Geoff Baker advise careful consideration and strategic planning to ensure you present a compelling offer that aligns with your budget and goals.
    • KEY CONCEPTS – Understanding the key concepts in making an offer on a home, including earnest money, escrow, contingencies, and title insurance, is crucial for a smooth and successful real estate transaction.
    • DISCLOSURE & DISCOVERY – Disclosure and Discovery rules ensure that buyers are fully informed about the property’s condition and any potential issues before completing the purchase.
    • HOME INSPECTION – Home inspection is a crucial step in making an offer on a home, providing buyers with a detailed assessment of the property’s condition to make an informed decision.
    • CLOSING ON YOUR NEW HOME – The final step in the home buying process, where ownership is transferred from the seller to the buyer, and all remaining paperwork and payments are completed.
    • BUYER’S ESCROW PLANNING TIMELINE – Use this chart to draft your buyer’s escrow planning timeline, ensuring you stay on track and meet key deadlines throughout the home buying process.