Pre-Approved versus Pre-Qualified

We hear a lot in the news about how the housing market is doing and that we need buyers and inventory to stimulate the recovery more. And first time buyers are a huge piece to this equation. But regardless if you are a first time buyer or a home buying pro it is important to know what you can do.

One such way is to get Pre-Qualified. What is this? It is a simple task where as you speak with a lender and provide information over the phone that enables a lender to let you know how much home you can afford. While this is quick and painless it may not be in your best interest. If the lender is not experienced they may not ask the right questions and as a result be off on how much you could purchase. The other issue is that since credit is not involved there is a large unknown of what your credit really looks like and what that magic credit score might be.

The credit report is a major piece to the puzzle as it tells what your credit worthiness is. Many have been surprised both good and bad by what has been reported on these reports.

Cash to close is also another major factor in to regards to are you going to have enough money to pay for the costs when you buy.

And of course income is the truth about how much income we have to work with and the debt in relation to it that states how much home you can truly afford.

Getting Pre-Approved takes all this in to account and can be done quickly and painlessly. A good lender will ask the right questions so that the proper information can be gathered and verified so that you truly know how much home you can afford.

By getting Pre-Approved, it give you piece of mind while shopping for a home and allows a seller to take in to account that you are a real borrower that can perform.

So take the uncertainty and the guesswork out of that home purchase and get Pre-Approved.