Pre-approval or Pre-Qual? Mortgage
Pre-approval or Pre-qualify? What is the difference?
Daily Real Estate News | July 16, 2007Preapproved or Prequalified: What's the Difference?
Confusing prequalification with preapproval can mean disappointment for both a home seller and a buyer. Real estate experts say it's smart to urge buyers to become preapproved by their lender – not just prequalified.
For buyers to obtain a bona fide preapproval, they must submit a loan application with the necessary documentation and fee. After the lender verifies and analyzes the application, it will notify the applicant of how much money he can afford to borrow. Armed with that information, the buyer can confidently go home shopping.
Prequalifications are simply an estimate of what a buyer can afford. A buyer who assumes that this estimate is accurate and chooses a home based on the information may, in fact, be denied a loan when he actually applies. That results in a situation that wastes his time and can put a seller in an a bad position if they've already turned away a qualified buyer. And, of course, it wastes the real estate practitioner's time as well.
Source: Kiplinger’s Personal Finance Magazine (08/01/07)
My trusted lender resources:
John Coneys, Freedom Mortgage, 610-322-4886 or john.coneys@freedommortgage.com
Matt Lynch, First Choice Loan, 610-209-5970 or mlynch@fcbmtg.com
Jessica DeLisi, Philly Mortgage Advisors, 610-585-3369 or jessdelisi@phillyadvisors.com
