Before starting your search for a new home, meeting with a lender to determine how much house you can afford is essential. It is also important to know the difference between Mortgage Pre-Qualified and Mortage Pre-Approved. In a market with limited inventory, knowing the difference and taking the proper steps can mean having a more attractive offer compared to others.
The article below from HomeKeepr does a great job of explaining both scenarios. Please contact me with any questions you have or if you need help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 cell
indyhomepro@outlook.com
Source: HomeKeepr | Repost Houterloot 3/10/2021 -
There’s a lot to learn when you’re starting out on your home buying journey. From concepts like earnest money to closing costs, it’s a lot to take in during a very short period. But of all the things to know, understanding the difference between being pre-qualified and pre-approved for your mortgage is one of the most important.
Why Your Mortgage Application Status Matters
It’s always been a good idea to bring a strong offer to the negotiating table when it comes to real estate, but it’s even more vital when the market is short on inventory and long on buyers. If you’re in a multiple offer situation (and sometimes, even if you’re not), the sellers are going to weigh the various offers they receive to decide if they think your offer is enough to bring in what they need to sell their home, as well as considering how strong an offer it is.
A strong offer is one that has a lot of the obstacles already removed. For example, if you need to sell your house before you can close on the one you’re making an offer on, this might be considered a weak offer for some sellers. A weak offer doesn’t mean a bad offer, necessarily; it’s simply an offer that looks like it could be tricky to actually get to the closing table. The risk versus reward is too high. This is why having the right kind of mortgage application status plays in your favor when it comes to negotiation.
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