PRE-QUALIFICATION is only a loan agent’s opinion that you’ll be able to obtain financing. No or fre verifications are made so formal approval is not issued.
PRE-APPROVAL on the other hand, means the loan application has been made though a rigorous procedure. Pre-approval saves you the time of looking at houses you can’t afford. Pre-approved buyers are ahead of the game for several reasons:
- a seller will consider your offer more seriously
- generally you can offer a faster closing date which can be an incentive to many sellers
- it’s a safe bet that your agent will work even harder to help you find the right home
If you make an offer for a home and then apply for a loan you are at the mercy of the mortgage lender who now knows you don’t have time to shop around.
Need a great loan officer? I recommend these great local vendors.
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