MISTAKE #2 FAILURE TO GET PRE-APPROVED (NOT JUST PRE-QUALIFIED---THERE'S A DIFFERENCE)Many of today's leading real estate agents prefer not to work with a buyer until the buyer is pre-qualified for a loan. This may seem exclusionary at first, but by doing so, the agent is actually doing the home buyer a huge favor. The truth of the matter is that shopping for a home without being pre-approved wastes everybody's time. That's why I always advise anyone interested in buying a home that the first step they should take is to their mortgage lender. Once there, get pre-approved, not just pre-qualified.
Let me explain the difference.
Being pre-qualified means you have spent a few minutes with a lender who may have asked you several questions, but generally has no real insight into your financial obligations and, by extension, your overall financial situation. Even if a lender provides you with a certificate indicating you have been pre-qualified, the buyer knows that no financial information has been verified at that point, which devalues your negotiating power.
On the other hand, being pre-approved indicates to the buyer that you are a serious prospect. Getting pre-approval requires disclosure of financial information and provides you with an actual dollar amount that you can spend. Not only does this provide you with confidence to shop smarter, it also gives you an advantage if more than one buyer is interested in a property. If the seller had three offers, but your offer is the only pre-approved offer, the seller knows you are at least one step ahead of the others and can proceed more quickly. The other offers may encounter snags in getting the "pre-qualified " loans actually funded. By being pre-approved, that will not happen to you.
It is not as exciting as jumping in the car and looking at houses, but
getting pre-approved is a great way to give yourself an advantage when the time comes.
Bryan VogtStrano & Associates, Realtors® - GMAC Real Estate
(618) 355-5824
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O'Fallon IL Real Estate, Condos, Homes for SaleSwansea IL Real Estate, Condos, Homes for SaleBellville IL Real Estate, Condos, Homes for SaleScott AFB PCS Relocation---
Labels: lender, pre-approval, pre-qualified
# posted by
Bryan Vogt @ 2:40 PM
