First Time Buyers - Pre-Qualification vs Pre-Approved

Just thinking about owning a home of your own is exciting and a little daunting, but with professional assistance, it can be a whole lot of fun.

The first consideration must be financial– or how will you know what you can afford? Most sellers will not even consider your contract without a pre-qual or pre-approval. A pre-qualification is a professional estimate of what you can afford. A mortgage representative will check your credit, but will require no documentation as to assets. A pre-approval is issued once you have actually applied for a mortgage, provided the mortgage rep with documentation of income and assets and the application has been underwritten by the mortgage company.

This is like cash in hand once you find your dream home and can give you an edge in negotiating your price.