There is a clear difference between being pre-approved to buy a condo and pre-qualified. Pre-qualification practically means that you might be able to get a loan after analyzing income statements and some other information. You are thus likely to be pre-qualified for credit card loans.
As you are pre-approved for real estate loans, it means you can get money. Cash can be utilized to buy a condo that is for sale and that you really like. This is a process that normally involves application for loan, offering specific documents and then completing what lenders need in order to get you fully approved.
If you want to quickly get pre-approved on real estate loans, Gordon Tang offers advice that can be used right now.
Always Know What Can Be Afforded
You are not going to get pre-approved for loans in the event you are looking for property that is outside your afforded price range. Pre-approval is really useful for you because it allows shopping right within market price. The lenders are going to tell you exactly how much they can offer you. Because of this, you can easily work with a qualified real estate agent in order to find property that will fit the presented amount.
When you cannot find real estate property that fits the amounts that you are pre-approved for, you want to look somewhere else. If you find property within the range you are pre-approved for, it is really exciting since it means you can easily reduce monthly payments as you easily use most of the money you can receive.
Making An Offer
When you are pre-qualified for the mortgage loan, you have huge bargaining power. As an offer is made on a real estate property, sellers quickly see that you are pre-approved. This is highly enticing for them since they will be more willing to accept how much you offer instead of holding out for the new offer to appear.
If you are not pre-approved, you usually end up faced with a lot of stress after the offer is made. You hope you can receive money and it will be really upsetting for some consumers that find a great place and then they realize that it is impossible to get approved for loans. Closing will be done in a really short time frame since the lender already checked you out.
In some situations, credit reports have issues that will prevent people from getting a loan. You want to find out about these early so that you do not run into problems as you try to purchase a property. Evaluate your situation properly and be sure that you work everything up with the lender before even thinking about buying. Pre-approval automatically means that you can easily move forward with buying a property.
As you can see, some clear advantages appear when being pre-approved for a loan. You want to be sure that you are pre-approved if you want to buy something. If not, you will be faced with many problems.