It is useful for home buyers to understand the difference between loan pre-qualification and pre-approval. Pre-qualification, which in today's marketplace is usually done by mortgage brokers, means working with the buyers to determine how much they can afford and which loans are the most likely to be available to them. Loan pre-qualification can save buyers time and money and can even be a bargaining tool with a seller. However, pre-qualification is not the same as loan "pre-approval". The mortgage broker can often get the buyer a pre-qualification letter, but pre-approval must be issued by the mortgage lender.
Pre-approval means that the lender has definitely committed to loaning the buyer money, once the house itself is approved. Since it is a much stronger pledge, it is a much more valuable negotiating tool. When you hear someone talking about "pre-approval", they are referring to specific acknowledgment by a lender that they are willing to loan the buyer money. The real estate agent can be of assistance in this process.
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Call or text Bill Cullin at 302-841-7147 today!
Bill Cullin, REALTOR®
Your Real Estate Source at the Delaware Beaches
Email: Bill.Cullin@LNF.com
Websites:
www.DelawareBeachRE.com
www.BeachDelaware.com
www.TheHenlopen.com
Direct: 302-841-7147
Office: 302-227-2541
Toll Free: 1-800-462-3224, ext. 117
Fax: 302-227-8165
Long & Foster Real Estate, Inc.
37156 Rehoboth Avenue Ext, Suite 5
Rehoboth Beach, Delaware 19971
