When buying a house, there is a difference between Pre-Qualification vs. Pre-Approval
Nancy Miller of Coldwell Banker Residential Brokerage advises each and every home buyer client to approach the process of purchasing their next residence with the right steps. First and foremost—and one sure way to reduce the stress of the process—is to seek a pre-approval.
Sellers — be aware of the financing your home’s buyer is bringing to you.
While “pre-qualified” and “pre-approval” may sound like the same thing, they are not.
Sellers, if you’ve been approached by a buyer looking to purchase your house who is “pre-qualified,” this means that they’ve only received the opinion of a loan agent that they should qualify for your home.
Conversely, a buyer who brings a “pre-approval” is coming to you having already undergone the beginning steps of applying for a mortgage, and has received a written statement from a lending institution of how much home they can afford.
All they need is the address to which they are moving.
Buyers — take note that those who have obtained a pre-approval are taken much more seriously than those who are only pre-qualified.
There are extra advantages to getting a “pre-approval” beyond just knowing that you can afford your home of choice. Here are some of the additional benefits pre-approved buyers enjoy:
Affordable Control: waiting for your mortgage lender to tell you how much your payment will be—especially after finding your dream home—gives control to someone outside your budget. Most people have goals of which home ownership is just a piece of the puzzle. Knowing what you can afford and what you’re comfortable with, can give you control and peace of mind when buying your home.
Time Savings: many people looking to purchase—both first-time homebuyers and seasoned pros alike—spend days, weeks and more looking at properties they simply cannot afford, according to Nancy Miller. Save yourself (and your Realtor®) time, by knowing how much you can afford in a mortgage from the beginning.
Competitive Edge: when the right moment has arrived and it’s time to write your offer, having a “pre-approval” puts you in the driver’s seat of your offer. You’ve already discussed fees, interest rates, and more with your lender. Waiting until you’re ready to write only delays the process. In a bustling Spring real estate market, any doubts you give the seller will only go toward making a competing home buyer look all the better.
When it’s time for you to buy your next house, contact Nancy Miller at Coldwell Banker Residential Brokerage in La Grange, IL for solid real estate guidance that you can trust. Nancy’s process of home buying leaves nothing to chance, so you can sleep soundly in your new home.