Why Is Mortgage Pre-Approval So Important for Coronado Homebuyers?
There is sometimes confusion among buyers as to whether they should be pre-qualified or pre-approved for a home loan. Indeed there is also a common misconception that these are both the same.
It's actually vitally important to understand the important differences between them.
Pre-qualification is merely a lender's estimate of an amount you might reasonably be expected to be approved for, based on some requested information you've provided.
It is always far better to be pre-approved.
Pre-approval essentially confirms that, unless your circumstances change, you will be able to borrow a certain amount as a home loan.
Inevitably, this requires a far more stringent assessment of your entire financial situation and will require that you provide a lender with a significant amount of information, including recent tax returns, details of other borrowing (inc. credit cards), your income, details of other investments and savings etc., supported by a full credit check.
It's perhaps a good idea to regard pre-qualification as the equivalent of putting your feet in the water to gauge the temperature. It's handy in terms of giving you a ballpark figure, but the more sensible route is always to be pre-approved.
Pre-approved buyers will, crucially, be taken more seriously by sellers, who will be more confident in dealing with those people who can prove they can afford the property.
This can be especially vital in a competitive bid scenario.
It also enables your home search to be more sharply focused on those properties you can afford and, of course, means that the whole purchase goes a lot smoother if most of the home loan paperwork is already sorted.
We have great relationships with the top home finance professionals in the area, so why not contact us on 619-886-0175 and make a start on getting pre-approved.