For Real Estate Buyers and Sellers:
When you are “pre-qualified,” the lender is making an educated guess about how much you can borrow based on information you’ve provided. When you are “pre-approved,” the lender has verified everything you’ve provided and is offering to lend you up to a given amount at current interest rates — under certain conditions.
It’s much better to be pre-approved when shopping for a home because both you, your real estate agent and the seller know what you can afford. Whether pre-qualified or pre-approved, final clearance and a check at closing — a loan commitment — are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check, and other verifications.
When meeting with lenders, always ask what additional steps will be required to obtain a loan.
And for Buyers…ALWAYS:
Postpone any big-ticket purchases until after you buy your house.
Excerpts from “Ten Mortgage Mistakes You Can’t Afford from Realtor.com” By Lew Sichelman
Copyright © by Move, Inc.
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Tags: BEST HOME VALUES, Flat Fee MLS, FSBO MLS, fsbo-kc, greater kansas city area, lawrence, loan commitment, MLS, pre-approved, pre-qualified, real estate for sale, topeka
