Preapprove/Prequalify

Pre-approval vs. Prequalifying
A Pre-Approval is a powerful tool towards the purchase of your new home with a minimum of surprises and disappointments. It presents you as a "cash" buyer to the seller.

Talk to a Lender
Anyone who wants to buy a home today should go to his or her lender first. An understanding of how much you can borrow reduces the possibility of disappointment later. If you don't have a lender Contact The Sandy Frost Team; we'll be happy to recommend several lenders who have competitive rates and excellent service.


A realistic understanding of how much loan you can qualify for is a good step toward the goal of home ownership and a letter of prepproval can be the mechanism that makes it happen.


There is a distinct difference between a lettter of prequalification and a letter of pre-approval and it is important that you be aware of this distinction.


Pre-Qualification

Pre-qualification means there have been loan calculations made that show how much you "may" be able to borrow. It doesn't necessarily guarantee that such a loan will, in fact, be made by the lender.


Pre-Approval

Pre-Approval means "you are good to go!" You actually have a loan waiting, subject only to finding the home and the home appraising at the sales price. The pre-approval letter represents an actual commitment on the part of the lender. In order to secure such a letter it is necessary to complete a formal loan application and pay the associated fees. Credit, income and bank funds will be checked, and if the loan is a good investment, the lender will issue a pre-approval letter that provides a commitment for a limited period of time, subject to a satisfactory property appraisal and title search.


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