Wednesday, December 24, 2008
Update and Have a Wonderful Holiday
Checking out open houses and in the midst of Holiday preparations since the end of November but decided to take the time to add a brief update. You may have noticed nothing new in my blog. Since many economic changes are occuring rapidly, I decided to take a little time to research issues that I have been asked about. Keep track of this blog and be sure to check back within the next few weeks for more write-ups, general real estate information, and tips to get things moving. In the meantime, have a wonderful Holiday and I wish you the best for 2009! Let's make your Dream Home a reality in 2009!!!
Thursday, November 20, 2008
What is prequalification and do I need it?
So, a potential home buyer asks, what is prequalification, do I need it?
Two words used with frequency confuse both buyers and sellers. One often hears of pre-qualification and pre-approval. What's the difference and why does it matter? Pre-qualification refers to an opinion a potential buyer has been given by a lender regarding his purchasing budget. In other words, pre-qualification is basically a quick credit check, it does not mean you can get the loan. Pre-approval refers to the process whereby a buyer has had credit and other financial information actually checked out and knows with more certainty the maximum amount a lender will give. Pre-approval does not guaranty that you will actually get the loan.
Then, why would someone want or need pre-qualification and pre-approval. Both should be thought of as important steps on the path to purchasing a home. Pre-qualification makes sense because it helps one start to focus on what is affordable and available within one's budgetary range. There are many beautiful properties out there and it is very easy to spend time dreaming and then encounter disappointment when looking at homes out of ones reach. So, pre-qualification is useful.
Pre-approval however enables a buyer to get on a faster track to purchasing a home. A pre-approved buyer is a serious buyer who knows his/her budget and limitations. This is a big time saver for all parties involved. After pre-approval, a buyer should work quickly with a realtor to identify those available properties that can indeed be purchased.
Two words used with frequency confuse both buyers and sellers. One often hears of pre-qualification and pre-approval. What's the difference and why does it matter? Pre-qualification refers to an opinion a potential buyer has been given by a lender regarding his purchasing budget. In other words, pre-qualification is basically a quick credit check, it does not mean you can get the loan. Pre-approval refers to the process whereby a buyer has had credit and other financial information actually checked out and knows with more certainty the maximum amount a lender will give. Pre-approval does not guaranty that you will actually get the loan.
Then, why would someone want or need pre-qualification and pre-approval. Both should be thought of as important steps on the path to purchasing a home. Pre-qualification makes sense because it helps one start to focus on what is affordable and available within one's budgetary range. There are many beautiful properties out there and it is very easy to spend time dreaming and then encounter disappointment when looking at homes out of ones reach. So, pre-qualification is useful.
Pre-approval however enables a buyer to get on a faster track to purchasing a home. A pre-approved buyer is a serious buyer who knows his/her budget and limitations. This is a big time saver for all parties involved. After pre-approval, a buyer should work quickly with a realtor to identify those available properties that can indeed be purchased.
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