Answering 2 Common Home Buying Questions

In this Q&A, we’ve set our sights on two common home buying questions.
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As experts in the industry, we get a lot of questions from buyers, sellers, and homeowners regarding their real estate goals. For this reason, we’d like to clarify two of the most commonly asked questions for all of you today:

“How can I determine what kind of home I can afford?”

It’s easy to get so excited during your home search that you forget to keep certain practicalities in mind. As a result, many homebuyers end up looking at homes that are either over or under their ideal price range. To avoid the uncertainty and disappointment that comes along with this, it’s best to nail down your budget before you even start your search. You can easily achieve this by getting pre-approved with an experienced, local lender. I would be happy to refer you to someone if you’re thinking of buying anytime soon.

“
Getting pre-qualified is a good start, but it won’t
give you nearly the leverage a pre-approval will.”
“What’s the difference between a pre-qualification and a pre-approval?”

Most people know that lenders can issue pre-qualification and pre-approvals, but not many buyers understand the difference between these things. Getting pre-qualified is actually much less involved than getting pre-approved. With a pre-qualification, the lender will simply ask you a few questions about your financial situation and then make a general assessment of your capacity to purchase a home based on that conversation. This is a good start, but it won’t give you nearly the leverage a pre-approval will.

Unlike a pre-qualification, which is very informal, a pre-approval will require you to supply your lender with various documents related to your financial circumstances, like pay stubs and tax records. It’s no wonder, then, why sellers take offers from pre-approved buyers more seriously.

Hopefully, this quick Q&A has been enlightening for you. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.