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 acknowlegment by a lender that they are willing to loan the buyer money. The real estate agent can be of assistance in this process.

	See All Tips In The "Financing Your Home" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Margaret Henkel
Michael Saunders and Company*
*Licensed Real Estate Broker
8330 S. Tamiami Trail
Sarasota, FL 34238
Phone: 941-924-3864
Fax: 941-922-0931
Email: MargaretHenkel@michaelsaunders.com

I have been a Number1Expert since Sept. of 1999. I hold the GRI & ePro designations.

  

www.margarethenkel.com is brought to you by Margaret Henkel
NUMBER1EXPERT™ in real estate for Sarasota, Siesta Key and Longboat Key, Florida, Golf Communities, Beachfront Homes, Luxury Estates

Read Margaret Henkel's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge