Pre-Approval VS Pre-Qualification. Why you need an Approval rather than just a pre-qualification. Hi, my name is Danielle Abraham with the RE/MAX NC Coastal Team. It can end up costing you thousands of dollars if you truly aren’t qualified. We’ve helped save hundreds of buyers from making huge mistakes when purchasing that could cost them thousands of dollars.
A pre-qualification is NOT a true approval its the initial step in the home loan process where you just discuss your financial situation with the loan officer, but nothing is verified. The approval is where the buyer actually provides the lender with all of the necessary documentation to tell them what they are approved for, which loan product is the best option for them and give the buyer a better idea of the interest rate. You want to go through the entire approval process.
The lender will do things like verify your employment, review your taxes, and look at your bank statements, they’ve truly verified everything you will need in order to let you know how much they will loan you and what your payment will be. It’s essential that you do this, otherwise you could stand to lose your due diligence fee and any money that you’ve spent on things like inspections or the appraisal. Don’t fall into that trap, call us and let us walk you through the safest and most strategic way to become a homeowner. We are here to protect your best interest.
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