Michael Kogler
REALTOR®
Direct:302.226.4499
Fax:302.227.8165
1.800.GO.BEACH


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PREQUALIFICATION & PREAPPROVAL

Getting pre-qualified helps you determine how much home you can afford, based on specific financial information you share with a lender. The lender does not verify this information, and consequently there is no guarantee you will qualify for the loan amount. Getting pre-approved requires that the lender verify your financial information, and does not serve as a commitment to lend a specific amount based on that verified information. There is normally no cost involved in obtaining a pre-qualification however a lender may charge a fee to provide a pre-approval letter. A pre-approval does provide ypu with significant buying power with a seller who recognizes you will be approved for a loan.

What's pre-qualification?
Pre-qualification is a informal discussion between borrower and lender. The lender estimates the amount you can borrow based soley on what you tell them about your income and assests. The lender does no verification and is not bound to make the loan when you're ready to buy. On the other hand, loan pre-approval is based on documented and verified information regarding your employmnet, your income, your liabilities, your assests and the cash you have available to close on a home purchase.

How is pre-approval better?
To a seller, a lender's pre-approval letter is considerably stronger than a pre-qualification letter. If a seller knows your financing is secure, your offer is stronger. Pre-approval also gives you peace of mind as you shop for a home, knowing you will qualify for the for the proper mortage amount.







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