Preapproved vs. Prequalified

Why it's so Important to be Preapproved in this Market

If you're buying a home this year, a strong pre-approval from a respected local lender is a non-negotiable. I've seen weird things happen with finances over the last decade, and in today's competitive market, it is not the time for you to play games with who handles your mortgage.

Some buyers think that they've covered all their bases with the preapproval when really all they have is a pre-qualification, and usually from a less reputable bank.

The difference is that a pre-qualification is often based upon loose, undocumented information usually provided verbally or typed into a computer directly from the home buyer. Meanwhile, a pre-approval includes documentation with things like credit checks and tax returns, bank statements and other verifiable pieces of information.

The strongest buyers go a step further with a fully verified preapproval. This means the only thing left for the financing is lender approval of the appraisal, title and a few other small items. When I'm working with a seller, this is the next best thing to a full cash offer. Fully verified preapproval gives the confidence that the file's been heavily scrubbed, and we are all limiting our risk involved with the financing contingency.

I've seen buyers write offers on our listed properties and lose thousands of dollars because they verbally lied about the information they used to get a prequalification. If these buyers had been fully pre-approved, their lies would've been caught up front, and they would not have lost the earnest money that they put down on the property they wrote an offer on.

That brings me to my next point, which is: who you choose to get your mortgage with matters. Everyone wants a deal, but using discounts in the mortgage world is going to hurt your chances of actually getting a house.

Since sellers in today's market usually have a number of offers on the table, you don't want to hurt your chances by using a mortgage lender that doesn't provide value. Even if a bank has a lower interest rate, it doesn't do you any good if their name is keeping you from getting a house in the first place.

My team will get you connected with a loan officer that will not only fully pre-approve you, but that other agents will be excited to see on your preapproval when we submit your offer. It's a simple way to make your offer stand out without adding any extra costs or taking on any other risk.

To get started on your home buying journey, reach out to us at theminterteam.com/contact or message us on socials. I will make sure that we get you moving on the right track. Let's connect soon.