There is plenty of real estate terms used in transactions. Needless-to-say it can be confusing for both buyers and sellers trying to navigate the process.
The home loan process might feel overwhelming and difficult to understand. Both buyers and sellers find terms like “Pre-Qualification” and “Pre-Approval” used interchangeably, it’s no wonder they find themselves wondering how to proceed.
The first step in obtaining a home loan is to meet with a lender to discuss their financial situation. The lender will discuss income, job stability, debt, and credit.
Once the lender has performed a basic review of the qualifications and
The Pre-Qualification letter is used to provide evidence that the buyer has been reviewed by a lender who is vouching for their ability to obtain a loan.
A Pre-Approval is quite different. In this case, the lender collects all the necessary information and proof of eligibility and has it reviewed by the lender underwriter for approval.
A Pre-Approval letter is almost like shopping with cash, the only remaining piece of the puzzle is the property they are buying.
We’re here to help you navigate and demystify the home buying process. From finding the right lender, finding the right home and negotiating the best deal we strive to be your trusted real estate advisor and realtor in the Greater Denver Area.
Contact us with all of your real estate related questions, we’d love to help.