Pre-Approval vs. Pre-Qualification

Have you ever wondered why your realtor asks you for a pre-approval letter and not a pre-qualification letter from your lender?

A pre-qualification letter is not a true approval. It can end up costing you thousands of dollars if you aren’t truly approved for a loan.

You want to make sure that you are getting pre-approved by your lender, that they are verifying your employment, your bank statement, your taxes. That way you know how much you can afford and what your payment will be. Your pre-approval is essential.

Otherwise, you could stand to lose your earnest money deposit and any money that you’ve spent on inspections or on an appraisal. A realtor can walk you through the safest and the most strategic way to become a homeowner. And don’t forget, typically the seller pays the fees to have an agent represent you as the buyer. However, your agent is there to protect, negotiate, and look out for your best interests.

We hope you found this helpful, if you are ready to take the next step reach out and set up a time to talk!