When considering a move, buyers tend to seek out information regarding their finances. Many of them tend to speak to a lender with the goal of obtaining a pre-approval. While this is a great first step, depending on how fast you want to move, there are a few things to consider when beginning the process. Knowing the difference between a pre-approval and prequalification is a great first step when preparing to buy a home.
- A conversation, a skim of checkboxes, or run credit.
- “Based on what you’ve told me you can afford a $300k home.”
- After market crash is not a solid estimate of what the buyer may be able to afford.
- A review of bank statements, applications, and other official documents.
- “According to a lender review of credit and bank documents you can afford a home within this range: $300k – $400k.”
- Can be done in 1-2 days with a much greater chance of success.