Pre-Qualified or Pre-Approved?

The first step the prudent buyer should take is to get their financial ducks in a row.  It is important to understand the difference between Pre-qualification and Pre-approval.  The former is when a lender evaluates how much you can afford to borrow using the information the buyer provides on their income and credit information. The latter ( pre-approval) is a more involved process in which the lender actually verifies a buyer's income, employment etc.  It should be obvious that a buyer should get pre-approved before making a major decision on the purchase of real estate.  In the event that there is a small glitch or error in the credit history, that could adversely affect the pre-approval process.  It is better to insist on pre-approval and get the pre-approval in writing.  This way you will know exactly the price range you can afford and you can take action quickly when you find the home you love.

Robert Mair

Robert Mair

Managing Broker
CENTURY 21 Home Realty Inc., Brokerage*
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