Pre-Qualification vs. Pre-Approval
There is a difference
Pre-Approval Pre-approval will give you the exact amount you qualify for and provides other advantages for making offers in a competitive market like the Bay Area. With a pre-approval, the lender takes an extensive look at your financial picture, including two years of your W-2s or 1099s and tax returns, a credit check, your debt/ income ratio and how much you have for a down payment. Being a pre-approved buyer lets the seller know that you are in a position to buy now, which can give you a distinct advantage when there are multiple offers on a home. Not all loan packages are the same. Going through the pre-approval process is a win-win situation that helps your mortgage broker create a loan package that fits your needs.
Pre-Qualification or Pre-Approval: Knowing how much you qualify for is an important first step before starting your home search. Understanding the price range we should focus on, your down payment options, as well as monthly mortgage payment options ahead of time, will help you to find and close on your ideal home quickly. Pre-Qualification Pre-qualification provides you with a general estimate of how much the bank will allow you to borrow. It’s easy and can be done over the phone or online. You provide the mortgage company or bank with information such as your income, debt, and employment information. In return, you will be given a loan estimate.
14 | Von Kaenel Giambruno Real Estate Group
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