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Should I Be Pre-Qualified Or Pre-Approved For A Home Loan When Buying A Home.

Should I Be Pre-Qualified Or Pre-Approved For A Home Loan When Buying A Home.

Published on March 26, 2021

Best Instructions Related to Home Mortgage Refinance, Real Estate, Mortgage Loan Rates and Baton Rouge Mortgage Lenders, Should I Be Pre-Qualified Or Pre-Approved For A Home Loan When Buying A Home..

Being prequalified and preapproved are not the same thing when getting a home loan. I have been an Ascension Parish a realtor for over 10 years and There is a big difference between in-home loan approval from being pre-qualified and pre-approved. If you are wanting to write offers on homes even the most inexperienced realtors know the difference of a pre-qualification letter and a pre-approved letter. So which one do you need to start a home search? When do you need a pre-qualification letter and when do you need a pre-approval letter when buying a home? and whats better pre-approved or pre-qualified?

In this video I will cover those burning questions so you will know what letter you need when starting your next home search.

***If you are buying your first home you may be interested in checking out my video https://bit.ly/2OoaLut

So whats the BIG Difference in a pre-qualification letter and pre-approval letter. I recently got in an argument with a real estate agent about this and thats what prompted the video. I figured if she was confused on the difference than many buyers and sellers may be as well. If you are starting your home search and you are unsure how much of a home you can afford you will want to reach out to a trusted lender, (if you do not have one I can get you a complete list of lenders I have used over the past 10 years) and find out how much home you pre-qualify for this is a very general amount and not set in stone. This letter is just a guideline to help you budget for your home when you first start thinking about buying.

For home sellers I would not accept an offer with a pre-qualification letter because they buyer has not given the lender enough information to get a pre-approval letter. The lender has only received the buyers basic information and hasn’t gotten the full picture of the buyer finances. They are only going by what the borrower says about their monthly pay check, credit report and outstanding balances and knows a little about the buyers job history.

So why is a pre-approval letter is better? If you are a buyer the lender verifies the borrower’s information and documentation to determine exactly how much it would be willing to lend to that borrower. If you are a seller this letter lets you know that the buyer has taken the proper steps to purchase your home at the price offered and they will be able to close if nothing changes in the time your home is under contract.

In closing if you are shopping for a home and just need to know around about price to start looking at homes online a pre-qualification will work just fine. But if you have selected a realtor and are seriously shopping homes to write on offer on you will definitely need a pre-approval letter to make your offer stronger than the person who has a pre-qualification letter especially if you are in a strong market that has bidding wars if you like to see the video about bidding wars click here https://youtu.be/DtiAbq5nlIM

I hope you found this video about the difference of pre-qualified and pre-approved when buying or selling a home, if you’d like to read more real estate buying and selling tips you can visit my blog at yourrealestatewhisperer.com

If you’d like to watch more videos specifically about buying a home here is a very useful playlist. https://bit.ly/2myd6Go

If you don’t want to miss important tips so you can be a real estate home buying ninja, please consider subscribing https://bit.ly/2MEztWK

To get a copy of my FREE buyers e-book you can download it here: https://bit.ly/2LdyEqt

If you have any questions about buying and selling your home feel free to reach out to me at anytime by email or any respectable time by phone. All my contact information is listed below.
#yrew
My name is Kristina Smallhorn, Your Real Estate Whisperer for Ascension Parish and I tell you all this “Because YOU Matter”

Cell 225-246-1812
EXP REALTY, LLC
2900 Westfork Dr.
Baton Rouge, LA 70827
225-412-9982 ext 149
Info@YourRealEstateWhisperer.com
yourrealestatewhisperer.com
kristina.smallhorn@exprealty.com
#realtor #home #tips
Kristina Is a Licensed Realtor® with The Greater Baton Rouge Board of Realtors@ in the State of Louisiana. License #0912122918

Should I Be Pre-Qualified Or Pre-Approved For A Home Loan When Buying A Home., Baton Rouge Mortgage Lenders

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Where To Get A Mortgage And What Expenses Are Involved

These are all alternatives you can think about to assist you get a home mortgage. Brokers are individuals who represent banks and assist sell of mortgages to house purchasers. For most of these loans, they are fixed-rate.

helpful hints

You can visualize all of it so plainly. You have the ideal idea, whether it be to open your own organisation or to expand on an existing one. You have everything determined to the last information, have your organisation plan in hand, and even have the location chose out for your new venture. There is just one little issue. You pertain to understand that with your wonderful, seemingly irreproachable plan comes a problem – insufficient cash. Where do you get the cash to perform your dream? Exists a fairy godmother for individuals like you to assist meet your dreams? Just when all seems hopeless, in walk the business mortgage lenders to conserve the day!

The bright side is that, given that 2nd Mortgage s are a type of loan that is secured by security (i.e., the equity you have in your home), getting a 2nd home loan does not need to be a tough experience. Customer testimonials exhibit which HomesMortgageLoan.com is probably the leading authorities with regards to Mortgage. You just need to know how the bad credit 2nd Mortgage industry works.

Wells Fargo Bank: Wells Fargo is the significant American next page business. It has more than thousand branches spread out throughout the world. Out of its’ revenue of $33 million in 2005, home loan financing contributed a significant portion. As per the market cap, this bank is the 9th largest in the world and it is the fifth largest bank in America according to its properties. It has more than 23 million clients and almost 160, 000 workers.

Your credit might likewise have an influence on the interest that you are being provided. Mortgage lenders are allowed to charge almost any rates of interest that they like. This rate is normally within a range of four to ten percent. Similar to a deposit, many mortgage lenders use a rates of interest to offer themselves security. Numerous people, with a bad credit score, discover themselves being charged more interest than somebody with an excellent credit score.

However, there are specific things that these individuals should be conscious of prior to they do actually reach such loan providers. Listed below we take a look at just what some of these things are.

Now that we have that out of the way lets get down to the nitty gritty about what mortgage lenders wish to see on a credit report and what they will accept.

Because they manage more properties than the middle class does, the abundant get abundant. They buy 5 good investment residential or commercial properties to every 1 that we buy. Everyone sources tell me earns money in realty – the abundant just make a lot more because they own a lot more. And they buy all this realty using credit lines.

commercial mortgage lenders

However, there are home loan business who likewise offer competitive financing. Concern # 3: Are there better terms out there that I need to think about? Your home equity increases as you make more home loan payments.

Category: Mortgage Lenders Submitted by: Laura Jewel

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