Pre-Approved vs. Pre-Qualified; There’s a BIG Difference.
If you’ve explored buying a home, you’ve probably heard the term “pre-approval” at least once.
It’s important that homebuyers understand the nuances to ensure a smooth homebuying process.
For example, did you know there’s a difference between ‘Pre-Qualified’ and ‘Pre-Approved?’
Many online services claim to provide pre-approval with only a few clicks. But what they’re offering is not the same as pre-approval from a lender.
Unless a lender is assessing your proof of income, debt-to-income ratio, and credit score, among other things, then you’re not getting pre-approval.
At some point in the homebuying process, you will need to work with a lender. Why not start with an expert from day 1 of your home search?
The value of true pre-approval can’t be overstated. First and foremost, it simplifies the buying process exponentially. Instead of waiting until you find a house and then starting on a home loan, you’re ready to go when that perfect deal comes along.
Although pre-approval is only one step in the financing process, it’s the first domino in the chain reaction of obtaining your home loan. When this is in place, the odds of success increase.
And sellers LOVE to see pre-approval. In fact, many homeowners nowadays request that their real estate be shown only to qualified buyers.
It shows that the prospective buyer is serious, providing peace-of-mind and security for all parties.
Finding the right lender is important, too. There are tons of financing options out there, some with significant benefits depending on a buyer’s circumstances. With our years of experience in the Des Moines real estate market, we have a broad network of lenders that we can recommend. Give us a call to get connected with a lender that can offer solid pre-approval rates for your budget. And feel free to reach out if you want to learn more about mortgage pre-approval!
If you want an idea of what you can afford prior to meeting with a lender, we have a mortgage calculator available on our website!