Pre-Approval vs. Pre-Qualification or Why Speak With a Lender First


Before you begin your home search in earnest, I highly recommend that you work with a lender to get pre-approved for a home. Many home buyers will talk to a lender quickly and get pre-qualified, but this is not the same thing.

Pre-approved buyers are ahead in the home buying game. If you make an offer on a home and then apply for a loan instead of the other way around, you are at the mercy of the lender who now knows that you don’t have time to shop around.

A pre-approval letter from a lender will also give you an edge when multiple offers have been made on a house. Pre-approved buyers generally close escrow more quickly, since most of the paperwork has already been taken care of.

Pre-Qualification is only a loan agent’s opinion that you’ll be able to obtain financing. No verifications are made, so formal approval is not issued.

Pre-Approval means your loan application has been taken through a rigorous procedure, including a review of your credit report. Pre-approval saves you the time of looking at houses you can’t afford.

I work very closely with some local lenders who have made my clients’ path to homeownership a stressfree and positive experience.  If you would like their contact information, please email or text me.  Happy to share.

Want to interview a couple of lenders?  Here is a link to my post Lender Interview Cheat Sheet.

Want to take a Homebuyer Class?  Here is a link to the current schedule: Free Homebuyer Workshop Schedule 2019

Posted on January 9, 2019 at 6:44 pm
Cindy Hill | Category: For Buyers | Tagged , , , ,