Getting pre-qualified helps you determine how much home you can afford, based on specific financial information you share with your lender. The lender does not verify this information, and consequently there is no guarantee you will qualify for the loan amount. Getting pre-approved requires that the lender verify your financial information, and does serve as a commitment to lend a specified amount based on that verified information. This gives you significant buying power with a seller who recognizes you will be approved for a loan.
What is Pre-Qualification?
Pre-qualification is an informal discussion between borrower and lender. The lender estimates the amount that you can borrow based solely on what you tell them about your income and assets. The lender does no verification and is not bound to make the loan when you’re ready to buy. On the other hand, loan pre-approval is based on documented and verified information regarding your employment, your income, your liabilities, your assets and the cash you have available to close on a home purchase.
How is Pre-Approval Better?
To a seller, a lender’s pre-approval letter is considerably stronger than a pre-qualification letter. If a seller knows your financing is secure, your offer is stronger. Pre-approval also gives you peace of mind as you shop for a home, knowing that you will qualify for the proper mortgage amount.
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TESTIMONIALS
What Our Clients Say
We always receive superlative service and attention from our Realtor and the support staff at Aldridge & Southerland Realtors. Always our first choice of realty groups!
Jennifer Bogenn is the best realtor she goes above an beyond
My wife and I worked with Patrick of the Robertson O’Sullivan team to both buy and sell our home in Winterville. We can speak from experience when we say that Patrick genuinely cares about the well-being of his clients. He really took care of us from the beginning of the buying process through the sell of our home while we were relocating. He was never pushy and always willing to explain anything we had questions about. Once we had made our decision, he quickly took care of everything up to closing and communicated very frequently. We would certainly recommend working with Patrick and the Aldridge and Southerland team.
I had a great Experience with Connie Corey as our agent she help me and my fiancé find out first home together. The experience with her surpassed all expectations we saw several houses before we found our house. I was glad that we where able to find our house she didn’t push any house on us and made sure we where comfortable in what we wanted and focused on our needs for the house. She was fast to get us information about the house and get to see the houses we wanted and when it came to the offer she was quick to make sure all the paper work was done so our offer would be seen first. I will definitely be using Aldridge and Southern and Mrs Connie when we decide to buy and sell our house in the future.
Our agent Mike Gemmill went ABOVE and BEYOND with both selling and buying our current home! He is extremely knowledgeable and answered all of our many questions. Our house sold in less than a day, and ABOVE asking price! We couldn’t be happier with Mike’s expertise!
Outstanding Service! Very professional and knowledgeable of the real estate market.
Best team of very professional realtors. Highly recommended and always available to answer questions. Thank you, Sarah Weir!