Prequalified vs Preapproved
When looking to purchase a home, everyone has different needs. Some people need three bedrooms, some people need a two car garage, but there is one thing that almost every buyer needs…..a loan!
Getting prequalified is the very first step to buying a home. Before you even look at your first house, finding out how much you can get a loan for is very important for a couple of reasons. The first reason is there is no point in looking at houses you can’t get a loan for. The second reason is talking with a loan officer will help you better understand how much of a loan your monthly payments will lead to. The third reason is getting prequalified will give you a bargaining chip when dealing with sellers.
A prequalification is good enough to start putting in offers on properties, but what it means is you could potentially get a loan for the amount stated (once you provide physical proof of everything you told them.) If you are preapproved, it means you can definitely get a loan for the amount stated, and you have gone through the extensive background check. A preapproval is better than a prequalification, but a prequalification is good enough to put offers in.
That is your real estate education for this week. As always, feel free to reach out to me personally if you have any questions at all.
Written by: Robert Judy