Before you begin shopping for a home, enhance your buying power by getting preapproved or prequalified.
Both options help you determine how much home you can afford based on the specific financial information you share with your lender. Especially with preapproval, this gives you significant buying power with a seller who recognizes you will be approved for a loan.
Prequalification vs. Preapproval
What is Prequalification?
Prequalification is an informal discussion between borrower and lender that helps you determine how much home you can afford. The lender estimates the amount that you can borrow based solely on what you tell them about your income and assets. The lender does no verification and consequently there is no guarantee you will qualify for the loan amount. Therefore, the lender is not bound to make the loan when you're ready to buy.
What is Preapproval?
On the other hand, loan preapproval requires that the lender verify your financial information, and does serve as a commitment to lend a specified amount based on that verified information. It is based on documented and verified information regarding your employment, your income, your liabilities, your assets, and the cash you have available to close on a home purchase.
Why is Preapproval Better?
To a seller, a lender's preapproval letter is considerably stronger than a prequalification letter. If a seller knows your financing is secure, your offer is stronger. Preapproval also gives you peace of mind as you shop for a home, knowing that you will qualify for the proper mortgage amount.
Beverly-Hanks Buyer Assurance
Rest Assured in Your Ability to Purchase.
The home mortgage process is more complicated than it used to be. Well-qualified people are often finding themselves delayed (or even unable to close) due to lender mandated last-minute changes and requests.
Beverly-Hanks Buyer Assurance eliminates the stress of the unknown. Nothing is worse than finding the perfect home, and then having circumstances out of your control prevent you from realizing that dream. After completing the Beverly-Hanks Buyer Assurance process, you can search for your home with confidence—the kind of confidence that only comes after a FULL loan approval.*
The best part of Beverly-Hanks Buyer Assurance is that when you present your offer to a seller, that seller will know that your offer is the next best thing to cash.
A Beverly-Hanks Mortgage consultant can help you understand how to take advantage of the Buyer Assurance process. But, really, it's simple. Turn your focus to finding your perfect home.
*Subject to an acceptable appraisal and updated credit documentation.