Pre-Approved vs. Pre-Qualification
Pre-approval, as opposed to pre-qualification, signifies that the loan application has been taken through a rigorous procedure. Here's why pre-approved buyers are ahead in the home buying game:
1. If you make an offer on a home and then apply for a loan, you are at the lender’s mercy, who is aware that you do not have time to shop around.
2. Pre-approval saves time spent looking at houses you can’t afford. With pre-approval, you already know what your max budget is.
3. Multiple offers - a pre-approval letter from a lender gives you an edge when multiple offers have been made on a house.
4. Lastly, pre-approved buyers can generally close escrow more quickly, since most of the work has already been done.
So if you're in the market for a home, get that Pre-Approval now!