HOW IT WORKS · [DATE]
Pre-qualified vs. pre-approved,
and what sellers actually see.
Before you make an offer, a lender looks at your income, debts and credit and tells you what you can borrow. There are levels to this, and sellers can tell the difference.
THE LEVELS
From estimate to approval
1. Pre-qualified
A quick estimate based on what you told the lender. It's useful for your own planning, but it carries little weight with a seller.
2. Pre-approved
The lender has checked your documents and credit. This is the standard for making offers.
3. Underwriting approval
The loan has been reviewed in full before you've picked a home. It's the strongest position short of paying cash.
What it means for you
If you're competing with other offers, a stronger approval can matter as much as a slightly higher price.
What to do first
Call a lender this week, even if you're months away. Knowing your number changes how you look at every listing.
Paige Radmer, broker with Delavan Realty, Inc.
What's your home worth?
A considered price, at no cost.
Not an algorithm's guess. I walk through your home, study the recent sales around it, and send you a price range I would stand behind.