Step 2 in The Home Buying Process Blog Series
In the current market, the number of home buyers outnumbers the amount of homes for sale. This is commonly referred to as a seller's market.
In a seller's market, it is best for a buyer to stand out in the crowd. One way to do this is to be Pre-Approved. Do not confuse this with being Pre-Qualified. They are different in the eyes of sellers and Realtors.
The Difference Between Qualified and Approved
Getting Pre-Qualified is the very first step. You give your lender a basic overview of your financial picture and they evaluate it to get an idea if you qualify for a mortgage and the amount you qualify for.
A Pre-Approval is done when your lender performs and extensive check on your financial background and current credit standing. You complete an official mortgage application and get approved for a maximum loan amount. Now is the best time to start seriously shopping and making an offer on a home.
How Pre-Approval Benefits You
Writing an offer with a Pre-Approval letter attached shows the sellers you are serious about buying. As well as showing you are in a solid financial position to purchase. With all else being equal, approval beats qualified every time.
The Adair Real Estate Team is a team of real estate agents in Coeur d'Alene ID, brokered by Coldwell Banker Schneidmiller Realty. We are full service Realtors for buying and selling real estate in Coeur d'Alene and all of North Idaho.
Jordan Adair | 208-449-1813 | Jordan@adairteam.com