Qualify or Die - Pre-Qualify Before Shopping for a Home

Pre-qualifying is one of the most beneficial steps you need to know as a homeowner and Realtor. Pre Qualifying can save time, money, and frustration.

Before you purchase your first home, you would need to apply for a mortgage. You will either be pre-approved or pre-qualified. There is a difference between the two, and you should definitely know what that is.

A pre-qualification is simple, quick, and usually doesn't require much documentation. You provide your credit info, income, and assets. The lender will sometimes do a soft pull or not even check your score. Most of this is done verbally.

A pre-approval means you have completed a full loan application. You have supplied all needed documentation, as well as asset info and credit info. An Underwriter has certified and approved you as well. This takes a little longer than pre-qualifying, but it is definitely worth it. You're going to have to do this anyway, so doing it in advance makes the process better and smoother.

A pre-approval gives you more buying power. Most sellers are okay with pre-qualification but have more confidence in your sell with a pre-approval. A pre-qualified buyer can later find out that they are not qualified once the application gets to the underwriter.

When I first became an agent, and I didn't understand the importance of pre-qualifying. I would show properties without pre-qualifying them. They would call and be interested in a home. I would take them and ask questions later. I would get so excited that I had a potential deal that I would think everyone was approved and ready to buy if they were home shopping. Boy, was I wrong. I even spent ten months with my 1st buyer before I realized he wasn't ready. This was after putting multiple deals and even being pre-qualified at one point. I quickly learned after this experience. So it is detrimental that everyone learns the importance of pre-qualifying vs. pre-approval. So qualify or die.

Contact me today to talk about your steps to homeownership!