Pre-Qualification vs. Pre-Approval

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pre-approval

How do I know what price range to look in? How do I make sure my offer is accepted? These are two of the most commonly asked questions from first-time and experienced homebuyers alike.

Give your buyer the added advantage of a true pre-approval, not just an empty pre-qualification in this highly competitive market where multiple bids are common and sellers are considering every aspect of every offer they receive.

Identify your property price range and strengthen your bargaining power by understanding the difference between pre-qualification and pre-approval. Here’s the difference:

Pre-Qualification

  • Provides a “ballpark” estimate of your buying power.
  • Based on verbal summary information of your income and assets.
  • Requires a satisfactory review of property, financial documents and program requirements to issue final approval.
  • Offered by most lenders.

Pre-Approval

  • Provides proof to real estate agents and sellers you’re pre-approved for a specific loan amount.
  • Is based on review of your documentation verification of your income, credit and assets.
  • Requires a satisfactory appraisal and title review. No change in financial condition for final approval.
  • Metro Brokers Financial offers this service at no cost.

One of the best places to start is by getting pre-approved by a lender upfront in the process. Not only does it give you peace of mind knowing your price range is already pre-approved by the lender, but strengthens your position at the negotiating table, especially in multiple offer situations!

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One Response to “Pre-Qualification vs. Pre-Approval”

  1. Kristy Serkedakis Says:

    Just to clarify. A prospective purchaser can go ahead and make full loan application prior to locating the house to purchase and can get pre-approved for a specific loan amount subject to an appraisal and title review. Correct?

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