Pre-Approved vs. Pre-Qualified

Once you choose a lender, try to get yourself "pre-qualified." Being pre-qualified means that the lender has deatermined the maximum home price for which it will approve a loan. If the housing market is very competitive, with homes selling just days after they go on the market, you might also consider getting "pre-approved." That means the lender agrees to provide a mortgage even before you have selected a house. Not only will this help you to move quickly to close on a home once you find one, it can also give you an edge if others are competing to buy the same property. Some lenders don't charge for pre-approval, but it can cost $100 or more.

While pre-qualification is not a requirement to see a home, it is wise to speak to a lender about pre-qualifying for a home purchase even before you begin touring potential new homes. Being pre-qualified to buy a home makes your home search smoother because it provides direction for the search and helps you to stay on track with the financial goals you have in finding the dream you’ve waited for.

If you don't know who to see about getting pre-qualified, I am happy to provide you with suggestions.