Pre-qualification and Pre-approval are Important…
…It is important to get pre-qualified. And – even better to get pre-approved. The home buying process has a great many facets. The catalyst for the whole scenario is the lending process, unless you are a cash buyer.
Unless you know the financing ropes, you should begin by sitting down with a real estate agent for a general financing review. The competent agent will be able to school you in the verbiage of the finance world. It is hard to get the answers if you don’t yet know the questions. An hour with a knowledgeable Realtor® will give you your approximate mortgage zone, computed by your income to debt ratio.
The other option is to begin with the lender for consultation before you begin your search. Either way works, depending upon your circumstance. Pre-qualification is often confused with Pre-approval. To be pre-qualified, you have spoken with a lender and have been told the approximate price range within which you qualify. No money is collected and no income, cash or job verifications are done. You do a consultation, complete with your debt structure, a discussion of your credit history, a verbal review of your employment history and a discussion of your options.
The pre-approved buyer is nearly as good as a cash buyer. In a situation with multiple offers the buyer with the pre-approval certificate has a distinct advantage. In a situation of near – equal offers the approved buyer will step ahead of the competition. The approval certificate is issued after all credit reports and verifications are done. The only thing remaining for loan commitment is the appraisal of the chosen property.
At the least — pre-qualify. At the best — pre-approve. Call your lender of choice or call us for suggestions.
