Pre-Qualified vs. Pre-Approved

The first decision you need to make is to determine how much house you can afford. This is accomplished by being "Pre-Qualified". This will consider factors such as your current income, current debts and the amount of cash you have available for your new home. To determine how much you can afford click here.

Once you have a general idea of how much you can afford, your next step should be getting Pre-Approved. Pre-Qualifying will give you a general idea of how much you can afford. Pre-Approval is a more in-depth process whereby you actually discuss your situation with a mortgage lender. The lender will verify your credit report, employment and bank statements and issue a conditional Pre-Approval Certificate. The benefits of becoming Pre-Approved include:

Stronger negotiating position. Imagine you have found the home of your dreams and want to make an offer. You submit your bid without any financial information documented. At the same time, another buyer makes an offer of a slightly lower price but submits documentation indicating they are Pre-Approved for a mortgage.  Who do you think is in a better negotiating position?

To learn more about becoming Pre-Approved click here.

For a free report on financing, click here.

For a fact filled loan kit, click here.

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