So, why do you need an approval rather than just a pre-qualification? Well, it can end up costing you thousands of dollars if you truly aren't qualified.Hi, my name is Heather Witte, Owner of the
VIDEO: Pre-Approved vs Pre-Qualified - What's the Difference?
So, why do you need an approval rather than just a pre-qualification? Well, it can end up costing you thousands of dollars if you truly aren't qualified.
Hi, my name is Heather Witte, Owner of the Witte Group, and I've helped save so many buyers throughout the years from making huge mistakes when purchasing that could have cost them thousands of dollars.
You see, a pre-qualification is NOT a true approval. It's the initial step in the home loan process where you either complete a lender's online questionnaire or have a quick conversation about your financial situation with the loan officer, but nothing is actually verified.
The approval is where the buyer completes a loan application and provides the lender with ALL of the necessary documentation that will determine which loan product is the best option for them, how much money they're approved for, and give them a better idea of the interest rate for which they qualify. You and your money are better protected when you go through the entire approval process BEFORE submitting an offer to buy a home, because the lender has done everything like verify your employment, reviewed your tax statements, and bank statements, and determined your debt to income ratio. They've truly verified everything they need in order to approve you for the loan.
Better yet, you will know how much your monthly payment is likely to be, including Taxes, Insurance, Principal and Interest , so there are no surprises. It's essential that you do this, otherwise, you could stand to lose your initial deposit and any money that you've spent on things like inspections or the appraisal.
DON'T FALL INTO THAT TRAP!
Call me and let me walk you through the safest and most strategic way to becoming a homeowner. And, don't forget, it's FREE to work with me when buying a home. I represent you, and the seller actually pays the commissions in Texas, and you're protected, having a licensed professional representing your best interests. So give me a call and let's chat. I'm here to help! Until next time.
Hi, I'm Heather Witte, Owner of the the Witte Group at eXp Realty in Austin, TX. Heather manages a dynamic team of individuals dedicated to raising the bar in residential real estate by consistentl....