Mortgage Pre-Approvals Vs. Pre-Qualifies Submitted by Doug Quinn, AmeriFinance Mortgage 713-218-7333 / Quinn@AmeriFinance.com / www.AmeriFinance.com Why does anyone need a pre-approval and what is the difference between a pre-approval and a pre-qualify? When someone is looking for a new home to buy, it is important to get pre-approved and to work with a mortgage professional to be sure they are looking for the right size home and can get the mortgage they need. The realtor and the seller will usually require a pre-approval letter before they will sign a purchase contract. A pre-qualification has less strength. It means a mortgage officer has looked at the basics of their financial situation and determined that they qualify for a mortgage. A pre-approval means they have filled out a complete application and we have run their credit and did some verification of the income, as well as made sure they qualify and actually have the funds to close the loan. We actually run the approval process. Real estate experts tell first-time home buyers that it's critical to apply for a loan before shopping for a home, and it's true; this is an essential first step. But do you know that it's far better to be preapproved for a loan than to be prequalified? There are more advantages to gaining preapproval than you would initially surmise. When the lender hands a borrower a preapproval letter, it means the borrower can: • Save Time by Looking at the Right Homes If your real estate agent is sending you automatic e-mail listings of available homes, you can ask her to change the parameters to more tightly encompass the selection of homes that you are qualified to buy. • Spend More Time Examining the Right Homes By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. • Gain Confidence & Avoid Disillusionment Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it. You can minimize anxiety and remove last-minute loan surprises that could disqualify you. You'll sleep better at night knowing that the home you selected is yours. Moreover, you can tell your relatives and friends that the home you made an offer is definitely going to close and you will not "lose face" with anybody. • Increase Bargaining & Negotiating Power Sellers will be more likely to immediately accept your offer, even if that offer is for less than list price, because you are giving the seller peace of mind that her home is sold. She can take her home off the market and place it into pending status with confidence. • Enjoy a Faster Closing Period Because there is no window period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. It's possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can't decide which offer to accept. Yours will move to the front if you can accomplish the seller's need to quickly close. Because mortgage approval is generally the longest contingency to satisfy in a purchase contract, it is to your advantage to obtain a preapproval letter as soon as you're ready to begin your search. Lenders will render a decision based on your complete loan application, employment verification and data from all three credit reports. About the show advisor: Douglas Quinn is a seasoned experienced mortgage loan officer. He knows how to get the job done. Doug finds solutions when most lenders will not know how to get your financing closed. Doug has a degree in Finance and has many years experience in financial planning as well as business consulting. He can structure your loans that fit both your personal and business financial plans and goals. Feel free to call anytime to discuss you goals and dreams. He is your Mortgage Warrior.