Hawaii Edition
Bookmark and Share Email this page Email Print this page Print Feed Feed

Pre-Approved vs. Pre-Qualified

Don't Lose Out on a Dream Home


The first step in buying a home is to know how much money can be borrowed. This review is called a pre-qualification and it’s a simple review of income and expenses to identify the amount of a loan that can theoretically be approved. However, when it’s finally time to go out looking at prospective homes, it’s important to go beyond just getting pre-qualified and get pre-approved for a mortgage to assure that a dream home doesn’t get snatched up by another buyer.

In today’s fast-paced real estate market, home sellers are looking for assurance that people that submit a bid for their home will actually be approved for a loan. A pre-qualification letter does not provide that assurance; it does not provide an in-depth review of the prospective buyer’s credit history to assure that a lending institution will approve a loan. For that, a pre-approval review is necessary.

Taking that extra step to get pre-approved means filling out a loan application and having the lending company perform an extensive review of the applicant’s credit history. This pre-approval letter is then included with the bid on a home and the seller has a basis to decide whether to accept the offer or not. Think of it this way — a home seller gets two offers that are very close on price, but one is pre-approved for mortgage, and one is just pre-qualified. The pre-approved offer is the more obvious choice since the seller knows that the buyer can actually get a mortgage.

Anyone interested in help finding their dream home, can contact Angela Pohakuola Studer (RA) RS-79822, Coldwell Banker Pacific Properties, 4460 Kapolei Pkwy., Ste. 310, Kapolei, call 808-551-0900, email Angela.Pohakuola@cbPacific.com, or visit AngelaPohakuola.cbInTouch.com.

 

 

©2018 Coldwell Banker Pacific Properties. All rights reserved. Coldwell Banker Pacific Properties fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents affiliated with Coldwell Banker Pacific Properties are independent contractor sales associates and are not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.

 

Edit ModuleShow Tags

More from Natural Awakenings

Homeowner Happenings

If you are currently renting and want to figure out what the pros and cons are to buying, this article is for you!

Add your comment: