| In
today's fast-paced real estate environment, home buyers need
every possible advantage. Coldwell Banker has made home buying
simpler by helping buyers get "pre-approved," and
not merely "pre-qualified." What is the difference?
Pre-Approval
vs. Pre-Qualification
What
could be more comforting than the peace of mind that goes
with knowing your mortgage is fully approved?
You
will have a greatly improved negotiating position when you
are pre-approved for a mortgage. Sellers are more apt to negotiate
with someone who already has a mortgage approval in hand.
The pre-approval letter lets the seller know they are working
with a serious buyer. A pre-approved buyer can also close
on a property more quickly - another major consideration for
a motivated seller. Obtaining a pre-approved mortgage is essential
in a "sellers' market" or where supply is limited.
Pre-Approval
uses basic information as well as electronic credit reporting.
It is a true mortgage commitment. Which means a commitment
to financing your home and an indication of the total mortgage
amount available to you. Mortgage lenders, can help you through
the pre-approval process. In most cases, there is no charge
for this service. Ask your Sales Associate for more information.
Pre-Qualification,
on the other hand, is not a full mortgage approval, but an
estimate of what you can afford. When you pre-qualify for
a mortgage, the lender collects basic information regarding
your income, monthly debts, credit history and assets, and
then uses this information to calculate an estimated mortgage
amount.
Of
the over 50 different mortgage types available, the two largest
categories are fixed
and adjustable
rate mortgages, each with advantages to consider.
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to Finance Section |
