Pre-approval vs. Pre-Qualification

Are you wanting to purchase a home, but are unsure where to start? Here are a few items to consider before-hand

1. When do I want to move?

2. What area do I want to live in?

3. How much money can I spend?

4. How do I buy a home.

     As an onlooker to a real estate company, I would highly recommend finding an agent that knows the area really well, and who also has excellent communication skills. The next step would be gaining pre-approval or pre-qualification from a lender. If you do not know any lenders, your agent should be able to help you there.

     In some cases you can gain pre-qualification in mere hours electronically. This pre-qualified letter states the amount of money you are qualified to borrow. It is all based on the information you provide like salary, debt, etc.

   Getting pre-approved takes longer because the financial information you provide is independently verified, and more information is required.

     Having a pre-approved letter to submit with an offer can make the offer much more appealing to the seller.

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