Pre-approval loans and letters are a great way to get ahead of the game when you’re looking to purchase a new home. Not all pre-approvals are the same, however, so it’s important to know the difference between a pre-qualification and a pre-approval.
A true pre-approval is a lender that has checked your FICA score, has verified your income, and has checked all the necessary things they need to check to allow you to get a pre-approval letter to submit with your offer on a home. This puts you in a much stronger negotiating position than if you were simply Pre-qualified, which is when a lender gives you an idea of what sort of loan you could get based on information you’ve provided about your finances, but without actually verifying any of that information. When getting Pre-approved, be sure to ask about any conditions that are attached to the loan so that you can be prepared to address them before going into escrow. By getting Pre-approved, you’re taking an important first step in the home buying process!
If you need help getting in contact with a Central Coast Lender reach out to me at (805)440-0678 or email@example.com
Click the link below for a video explaining the basics of pre-approval vs pre-qualification with Stephanie Souza-Breault