Pre-Qualification vs. Pre-Approval

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Real Estate

Pre-Qualification vs. Pre-Approval

One sure way to reduce stress during the process of home buying is to seek pre-approval. Buyers who are pre-approved are taken more seriously than their pre-qualified counterparts. The Greater Fort Walton Beach area market has been booming and a pre-approval could make the difference in a multiple offer situation!  Make sure your Real Estate Professional knows the difference and is capable of explaining it to you. 

Pre-qualification is not a loan commitment from a lending institution; it is only a loan agent’s opinion that you will be able to obtain financing. Virtually anyone can achieve pre-qualification status. Pre-approval, on the other hand, signifies that the application has been taken through a rigorous procedure. Pre-approved buyers enjoy these benefits:

1. If you make an offer on a home and then apply for a loan, you are at the lender’s mercy. He sets the interest rate and points, aware that you do not have time to shop around.

2. Pre-approval saves time spent looking at houses you can’t afford.

3. If you rely on your lender to tell you what you can afford, you may end up with a high mortgage payment. Most people can qualify for more than they feel comfortable paying.

4. Having a pre-approval letter from a lender gives you an edge when multiple offers have been made on a house.

5. Pre-approved buyers can generally close escrow more quickly. Once you submit your credit package, most of the legwork has already been done.

Whether you are utilizing the benefits of a VA Loan, FHA, or Conventional loan, a preapproval letter can help secure the offer you are making on your home with the Fort Walton Beach, Destin, Navarre, Crestview, and Niceville markets because there are still more  buyers than sellers in our area!

Please feel free to call me at 850-999-3889 or email Jennifer.hannigan@floridamoves.com and I'll walk you through the process.  As an experienced Real Estate Professional, US Air Force Veteran, and Agent who has vast knowledge of VA Loans, it would be my pleasure to serve you.  Let's make your dreams of homeownership on the Emerald Coast a reality!