Get Pre-APPROVED!

Well, we’ve said it before and we’ll say it again- In order for a buyer to best make sure that the house they want to buy is the house they’re going to get, they need to be pre-approved, not just pre-qualified for their purchase.

People tend to get the terms pre-qualified and pre-approved confused with one another. Mostly to blame are the lenders, who confuse the terms themselves. When a lender pre-qualifies someone for a loan, many times they issue a letter that says that the buyer is pre-approved rather than pre-qualified.

And that simply isn’t the case.

By pre-approved, we mean submitting an actual loan application, paying the credit report with the lender sending out all verifications (income, job, and bank account), and the entire underwriting process being completed. Then the lender can issue a letter saying that the pre-approval process is complete, and only a real estate contract and an appraisal are needed in order to complete the loan.

By obtaining full credit pre-approval like this, a buyer not only puts themselves in a much better negotiating position (almost as good as a cash buyer), but it also can give them the peace of mind  knowing that, with the exception of inspections and appraisals, they are ready to close.

In our opinion, it’s simply the best way to go.