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 are full service Realtors in Coeur d'Alene ID. Give us a call if you are buying or selling real estate in Coeur d'Alene or North Idaho.
Jordan Adair | 208-449-1813 | Jordan@adairteam.com