Financing

Pre-Qualified Vs. Pre-Approved

Before you start looking for your next home, it's a good idea to find out just how much house you can afford. Determining how much you can afford and how much a lender will be willing to loan you, before you begin your search will save you valuable time in choosing the right home.

Pre-qualification for a mortgage helps you determine how much house you can afford. It is a good way to know what price range you should look in. Remember, becoming prequalified does not necessarily that you will be approved for a loan of that amount.

Preapproval from your lender means that you have provided them with the necessary paperwork and the lender has approved your actual loan amount. Having preapproval for a home loan will put you in a much better negotiating position, because the seller knows that you are able to obtain your loan in order to purchase their home.