DONE FOR YOU ARTICLE- SHOULD YOU GET PRE QUALIFIED OR PRE-APPROVED?

April Done For Your Articles and Scripts- MEMBERS ONLY

 SHOULD YOU GET PRE- QUALIFIED OR PRE-APPROVED

One of the most misunderstood terms in the mortgage industry is the difference between being pre-approved versus pre-qualified. While these two terms sound similar, in reality,they mean two very different things.

Before we go into the actual meanings of each term it is important to mention that you should always speak with a lender BEFORE you actively go searching for a home.

The lender will help you establish your comfort levels in terms of monthly payment and funds you will need. They will also advise you on which programs may be best for your particular situation and comfort levels.

SO WHAT IS THE DIFFERENCE BETWEEN PRE-APPROVED

AND PRE-QUALIFIED ?

Prequalified means that you have spoken with a lender. They have asked you questions about your income, assets, credit and other relevant information.

Based on that conversation and the information you shared they will suggest a program and a price range for you to start your home search.
It’s important to bear in mind that this is just a conversation and nothing has been formalized just yet.

Pre-Approved means that you have spoken with the lender. They have asked you questions about your income, assets, and run your credit report.

They have verified all of the information you provided with tax returns, w2s, paystubs and bank statements. 

Aside from now knowing which programs and price ranges are most appropriate, with a pre-approval you now have the peace in knowing that your funds are ready and waiting for you to find the right home.

Should You Be Pre-Approved or Pre -Qualified?

Now that you know the differences, it’s always best to be Pre- Approved.
Aside from having the peace of mind of knowing your loan is approved, there are other reasons.

When you put in an offer on a home the seller will want to know that you are Pre-Approved so they are not wasting time. The seller is taking their home off the market when they sign your offer, and this allows them to be comfortable knowing your loan approval will not be an issue.

This can help you with your contract negotiations and being pre-approved will speed up your loan process and allow you to settle on your home faster.

Pre-Approvals generally last 90 days but this may vary from lender to lender. If you are past 90 days most lenders will want to get newer bank statements, newer paystubs, and update your credit report.

Bottom Line: It’s always best to get Pre-Approved BEFORE you go shopping for your new home.

RESOURCE BOX:
Your name nmls company name e-mail phone bio
Call to action—call__________ visit_________

REMEMBER- you should use this article to get some FREE PR for yourself-
Send it to agents so they can brand it with their information and pass it out
Use it as content for videos and social media posts.. and feel free to modify it as you like.