Talk about it Tuesdays are a good time to take a refresher course in Real Estate terms. For those of you who have bought or sold a home in the past this may be old news- but worth revisiting. For those of you that this is your first time buying or selling- this is truly worth paying attention to, especially in today’s Real Estate market.
What does it mean when a potential buyer is Pre-Qualified or Pre-Approved? They are the same thing, right? They are a good buyer, right? This deal is going to go right through, no problems, right?
Well- maybe!- Wait….What?
Pre-Qualified– this is when a lender has told a client what he/she/they can afford based on information the CLIENT has provided to the lender. GIGO..is what this is often called (for those of you who do not know GIGO- it is Garbage In Garbage Out). If the client has provided the lender with less than accurate information, either intentionally or unintentionally, the lender’s ‘pre-qual’ decision is goign to also be less than accurate.
Pre-Approval, on the other hand, is when the client has taken things a few steps further- they have done an application with the lender, they have paid the application fee, and the lender has verified income, assests and debts and in the end provided the applicant with a pre-approval letter stating the remaining items, or conditions, to be met in order to move forward with said loan.
So, although potential buyers will say they are pre-approved- you need to know what they mean, as many, many, way too many use pre-approved interchangeably with pre-qualified and clearly they are two vastly different states of being!
Your Realtor with Avery Realty Group/Avery Properties will guide you in knowing how to spot the difference- let them show you how. Call Today!
Happy house hunting- Happy house selling and Happy Valentines Day!!!