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“When dealing with competing offers the deciding factor for sellers
is often the strength of the financing that is backing the offer.”
“Having a buyer pre-approved allows for a much smoother road to closing
and allows the buyer, once an offer is accepted, to focus on the details
of the property rather than the details of the loan.”
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Pre-Approved
What does Pre-Approved Mean?
Pre-approved means that you have submitted a written loan application to
the lender and the institution has already processed your application and
approved the loan. All that remains is to make certain the house meets the
financing institution’s criteria for appraisal and pest inspection.
Typically sellers like dealing with pre-approved buyers because they can
feel confident in the buyer’s ability to complete the transaction.
Pre-Qualified
What does Pre-Qualified Mean?
When you pre-qualify you give verbal information to the loan officer.
Without verifying the information, the loan officer issues an opinion
in letter form saying that based on this information and his/her experience,
qualifying for a loan should not be a problem. While this is a great first
step, it is still just an opinion and does not guarantee qualifying for
a loan.
Which should I do?
As you first begin your home search you may wish to speak with several
lenders to discuss your loan options. However, as soon as you know which
program and lender feels right for you, completing your loan application
and getting approval ahead of time is recommended. Your homebuying process
will be much smoother and you will have more confidence and peace of mind
when the right house comes along. Also if you are in a competitive offer
situation, being pre-approved could be just the thing to convince a seller
to accept your offer first!
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