When it comes to buying Laguna Hills homes, people have lots of questions in mind. How much can I afford to buy a home? Will the lender let me borrow money on the specific amount I needed? What are the necessary steps to apply for a home loan? What is my interest rate? Is my current credit standing affect by capacity to loan?
Before anyone could purchase a new home, unless they have huge amounts of cash in the bank that is enough to buy a home, buyers will need to get pre-approved by the lender first before they could purchase a home. There are lots of home financing institutions in Orange County that could help buyers purchase their dream home. Each of these financing institutions has different pre-qualification requirements. As a buyer, you need to pre-qualify for a loan before you get pre-approved. If you think pre-qualification and pre-approval for a loan are the same, you are wrong. These real estate terms are not used interchangeably on purpose. Each has different meaning and you need to understand them.
Pre-qualification for a loan would simply mean an estimate of the loanable amount that you might qualify. The assessment of your pre-qualification will be based on the financial document you submitted to the lender. Usually, pre-qualification is a ballpark estimate of the amount and type of loan you can borrow based on your financial document.
Pre-approval of the loan, on the other hand, is a firm assurance from the lender that you are most likely to receive financing. This is also a firm assurance on your side before you make an offer to buy a house. When you get pre-approved, you are certain that you have an available financing option to back up your home buying offer.
The pre-approval of the loan is more secure than pre-qualification of the loan. The prospective borrower should submit all the requirements or financial documents necessary to secure an approval. However, there are some potential barriers to get finally approved for a loan like the property-specific details such as home appraisal and title search.
In the pre-approval process, the lender would order a summary of your credit standing. The lender may also ask to see your employment verification status, tax information and bank statements. The results of this process can be leveraged as pre-approved and can be used in making an offer of your desired house.
Being pre-approved could be the smartest decision on the part of the buyer. Pre-approval would mean that the seller will put much trust in you on your capacity to finance the property. This can make your offer more attractive to seller and increase your chance for a quick takeout. Another benefit of pre-approval is that it enables you to shop for the available houses for sale on the market and helps you put a realistic budget on your dream home. It is like you’re a cash buyer, and your home shopping couldn’t be made any easier.
If you want advice on how to get pre-approved quickly, talk to us today! At Integrated Realty Group, we have over 37 different lender partners to work with.