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Pre-qualified or Pre-approved for Fresno, CA Homes for Sale?

Should You Get Pre-qualified or Pre-approved for Fresno, CA Homes for Sale?

When you first start talking about buying Fresno, CA homes for sale, you’ll hear “Oh, you should get pre-qualified first,” or “you should get pre-approved first.” So who’s right? What’s the difference between the two?  Is there any difference at all?

Pre-qualified Loans

Before shopping for Fresno, CA homes for sale, you want to look at lenders. Not all mortgage lenders are created equal. Especially now, with the rocky economic times, you have to be especially careful who you get your mortgage through.  When you find a lender you’re comfortable with, you have two choices: start shopping for houses or get pre-qualified for a loan.

Pre-qualification for a loan is based on the best estimate of the loan officer, not “set-in-stone,” verified facts. The officer believes, because of the information you tell them, that you have good credit and can financially afford a specific loan amount. For this reason, because it isn’t verified, pre-qualification doesn’t hold as much weight with buyers. As well, you could still end up wasting a lot of time looking at houses you can’t afford.

Pre-approved Loans

The second step in getting a mortgage loan is pre-approval. With pre-approval, the lender has received verification that, yes, you are credit worthy and yes, you can afford up to a specific loan amount.

Pre-approval not only gives the seller the idea that you’re a good prospect, but it also helps you out while looking for a home:

  • You already know how much home you can afford.
  • You already know that you’re qualified to buy any home you look at that falls within your verified loan amount.
  • You have better negotiating power with the seller (who may be more willing to accept less than list price knowing that you are already pre-approved).
  • The closing period can happen faster, narrowing the typical 30-day period to less than three weeks.

In short, when looking at Fresno, CA homes for sale, it’s better to be pre-approved, but you can’t get pre-approved for a mortgage without being pre-qualified.  So do yourself (and your new home) a favor and do both.

Need help selecting a mortgage lender?  We can help. Call us at 559-426-5117 or email us at info@nazaroff.com for more information.

Keyword/Tag:  Fresno, CA homes for sale

Links:

Not all mortgage lenders are created equal

http://www.federalreserve.gov/pubs/mortgagetips/

How much home you can afford

http://cgi.money.cnn.com/tools/houseafford/houseafford.html

Get pre-approved for a mortgage

http://www.smartmoney.com/personal-finance/real-estate/7-Tips-for-Getting-a-Preapproved-Mortgage/

FHA tightens underwriting policies

LAS VEGAS (MarketWatch) — The Federal Housing Administration said Wednesday that it would raise down-payment requirements, boost its mortgage-insurance premiums and tighten its loan underwriting practices in a bid to strengthen its capital reserves and remain solvent in the face of rising foreclosures and delinquencies.  Full Story

Report Shows Your True Options

Find out if a Loan Modification is the RIGHT thing for you and your family! 

New proprietary software will show you with YOUR numbers the information that you need to make a good decision!

Contact The Nazaroff Team for a FREE consultation to get your personal report.

 

Pre-qualified or Pre-approved for Fresno, CA Homes for Sale?

Should You Get Pre-qualified or Pre-approved for Fresno, CA Homes for Sale?

When you first start talking about buying Fresno, CA homes for sale, you’ll hear “Oh, you should get pre-qualified first,” or “you should get pre-approved first.” So who’s right? What’s the difference between the two?  Is there any difference at all?

Pre-qualified Loans

Before shopping for Fresno, CA homes for sale, you want to look at lenders. Not all mortgage lenders are created equal. Especially now, with the rocky economic times, you have to be especially careful who you get your mortgage through.  When you find a lender you’re comfortable with, you have two choices: start shopping for houses or get pre-qualified for a loan.

Pre-qualification for a loan is based on the best estimate of the loan officer, not “set-in-stone,” verified facts. The officer believes, because of the information you tell them, that you have good credit and can financially afford a specific loan amount. For this reason, because it isn’t verified, pre-qualification doesn’t hold as much weight with buyers. As well, you could still end up wasting a lot of time looking at houses you can’t afford.

Pre-approved Loans

The second step in getting a mortgage loan is pre-approval. With pre-approval, the lender has received verification that, yes, you are credit worthy and yes, you can afford up to a specific loan amount.

Pre-approval not only gives the seller the idea that you’re a good prospect, but it also helps you out while looking for a home:

  • You already know how much home you can afford.
  • You already know that you’re qualified to buy any home you look at that falls within your verified loan amount.
  • You have better negotiating power with the seller (who may be more willing to accept less than list price knowing that you are already pre-approved).
  • The closing period can happen faster, narrowing the typical 30-day period to less than three weeks.

In short, when looking at Fresno, CA homes for sale, it’s better to be pre-approved, but you can’t get pre-approved for a mortgage without being pre-qualified.  So do yourself (and your new home) a favor and do both.

Need help selecting a mortgage lender?  We can help. Call us at 559-426-5117 or email us at info@nazaroff.com for more information.

Keyword/Tag:  Fresno, CA homes for sale

Links:

Not all mortgage lenders are created equal

http://www.federalreserve.gov/pubs/mortgagetips/

How much home you can afford

http://cgi.money.cnn.com/tools/houseafford/houseafford.html

Get pre-approved for a mortgage

http://www.smartmoney.com/personal-finance/real-estate/7-Tips-for-Getting-a-Preapproved-Mortgage/