Pre-Qualification vs. Pre-Approval

Financing

Pre-Qualification vs. Pre-Approval

One sure way to reduce stress during the process of home buying is to set up an appointment with a Mortgage Loan Officer and seek to be pre-approved instead of only be pre-qualified. Buyers who are pre-approved are taken more seriously than their pre-qualified counterparts.

Pre-qualification is not a loan commitment from a lending institution; it is only a loan agent’s opinion that you will be able to obtain financing. Virtually anyone can achieve pre-qualification status. Pre-approval, on the other hand, signifies that the application has been taken through a rigorous procedure. As Real Estate Agents in El Paso TX. We have found that, Pre-approved buyers have enjoyed these benefits:

1. If you make an offer on a home and then apply for a loan, you are at the lender’s mercy. He sets the interest rate and points, aware that you do not have time to shop around.

2. Pre-approval saves time spent looking at houses you can’t afford.

3. If you rely on your lender to tell you what you can afford, you may end up with a high mortgage payment. Most people can qualify for more than they feel comfortable paying.

4. Having a pre-approval letter from a lender gives you an edge when multiple offers have been made on a house.

5. Pre-approved buyers can generally close escrow more quickly. Once you submit your credit package, most of the legwork has already been done.

Follow this link, If you would like to talk directly with a Professional Mortgage Loan Officer.