Does it Help to be Pre-Qualified by a Lender?
The short answer is: sometimes. Pre-qualifications can be completed quickly as they are based on less information than what is required for a pre-approval. It’s important to remember that a pre-qualification letter is an opinion from a lender of the maximum amount of money you can borrow and the amount could go up or down once you submit all of your financial information for review. In a competitive seller’s market, an offer from a buyer with a pre-qualification letter could be less attractive when compared to an offer that is pre-approved.
Get Pre-Approved by a Lender
When you are pre-approved by your lender, you know exactly how much you can borrow and this can make your offer more attractive to sellers because it will reduce the time needed to fund your load. The pre-approval process is comprehensive, so be prepared to provide documentation, which the lender may independently verify, including but not limited to:
- Job and career status
- Income
- Monthly debt payments
- Available cash
- Total assets and debts