All Posts

Pre-Qualified Vs. Pre-Approved

Pre-Qualified Vs. Pre-Approved

Get Approved

Get Approved

Many people are confused with being pre-qualified and being pre-approved but luckily for you it’s very simple. It’s a matter of just understanding the basic requirement from a lender.

If you’re pre-qualified it means that you Potentially could get a loan for the amount stated to you, assuming that all of the information given was accurate and true. It’s more of a document stating that the lender doesn’t see anything on the surface to decline you for the requested amount. It isn’t a legally binding document from the lender saying that they will back you for the amount. It is just a quick review, not an in-depth one.

If you’re pre-approved, it means that you have undergone the extensive financial background check, which includes looking at your (see 8 obvious & Not- So- Obvious ways to Improve Credit) credit history, previous tax returns and verifying your employment. It is also a Confirmation that the lender is willing to give you a loan for the amount stated. It means that you are APPROVED for your requested amount.  So, they give you a letter that states such and it is valid for a approximately 60 days thereafter.

Notwithstanding the above, you will have an accurate figure, which shows the maximum amount that you are approved for.  Most sellers prefer buyers that have been pre-approved because they know that there will not be any problems with the purchase of their home. It confirms to the seller that their time will be spent wisely and not wasted on an applicant who can’t afford there home.

Remember:

Pre Qualified → Pre Approved → Pre-ferred by Sellers

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
  • Technorati
  • MySpace
  • Yahoo! Buzz

1 comment to Pre-Qualified Vs. Pre-Approved

Leave a Reply

 

 

 

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>