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Buying a Portland home? Search all homes for sale
Today we'll be discussing an important
distinction among home buyers in Portland. I'm
talking about a pre-approval versus a pre-qualification. It's an important
difference that you may not know about, but home sellers will surely be scrutinizing
you about it.
A pre-qualification and a pre-approval are two
entirely different documents. A pre-qualification is a
much more basic certification, and it can be obtained in a few hours. You only
need a few pieces of information, none of which is really double-checked, and
you can then get your pre-qualification letter once a lender has looked over
your numbers. This is a very informal meeting between you and
the lender, and it doesn't mean a whole lot in the eyes of the seller.
A pre-approval letter is much more desirable,
and I highly recommend it to all of my home buyers. This
is more time-consuming, but it will designate you as a serious buyer if you can
acquire it. You will submit tax returns, pay stubs, insurance information, and
more. Once the lender has an opportunity to review these items, you will then
be issued an approval letter.
Both buyers and sellers like to see letters of
pre-approval, and this is especially true when the real
estate market is as hot as it is in Portland.
If you would like to be put in contact with a great local
lender, please don't hesitate to contact me!
