Does it Help
to be Pre-Qualified by a Lender?
The pre-qualification process can
be completed fairly quickly, based
on less information than is required
for getting pre-approved. While it
is fast and it does help, a pre-qualification
letter is an opinion from a lender
of the maximum amount of real estate
you can qualify for. In a competitive
seller’s market, an offer from
a buyer with a pre-qualification letter
could lose out to a person who is
pre-approved.
Get Pre-Approved by a Lender
There are several benefits to going
the extra mile and getting a pre-approval
letter. First of all, you will know
exactly how much real estate you can
afford. When you find a property you
want to buy, your offer will be in
a better positioned than someone less
prepared. Finally, being pre-approved
is more efficient; it reduces the
amount of time it will take your lender
to fund your loan. Be prepared to
provide comprehensive documentation,
which the lender may independently
verify, including but not limited
to:
Job and career status
