When you first begin speaking about buying Orlando homes for sale, you'll hear "Oh, you should get pre-qualified first," or "you should get pre-approved first." So who's right? What is the distinction between the 2? Is there any distinction at all?
Pre-qualified Loans
Earlier than looking for Orlando homes for sale, you want to have a look at lenders. Not all mortgage lenders are created equal. Particularly now, with the rocky economic times, you have to be particularly careful who you get your mortgage through. When you find a lender you're comfy with, you have two selections: start looking for houses or get pre-qualified for a loan.
Pre-qualification for a loan relies on the very best estimate of the loan officer, not "set-in-stone," verified facts. The officer believes, because of the information you tell them, that you have good credit and might financially afford a specific mortgage amount. For this reason, because it isn't verified, pre-qualification would not maintain as much weight with buyers. As well, you might still end up wasting quite a lot of time taking a look at houses you can't afford.
Pre-approved Loans
The second step in getting a mortgage loan is pre-approval. With pre-approval, the lender has acquired verification that, yes, you are credit worthy and yes, you can afford up to a particular loan amount.
Pre-approval not only gives the seller the idea that you're a great prospect, but it additionally helps you out whereas in search of a home:
" You already understand how much home you can afford.
" You already know that you're qualified to buy any home you look at that falls inside your verified loan amount.
" You have better negotiating power with the seller (who may be extra prepared to simply accept less than list price figuring out that you are already pre-approved).
" The closing period can happen sooner, narrowing the everyday 30-day period to less than three weeks.
In short, when looking at Orlando homes for sale, it's better to be pre-approved, however you can't get pre-approved for a mortgage with out being pre-qualified. So do yourself (and your new home) a favor and do both.
Author Resource:
Orlando Realty Experts .com is one of the leading team of Orlando real estate agents, engaged in real estate Orlando , Orlando MLS, Orlando short sales and Orlando homes for sale .
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