Approval vs. Pre-Qualification: Why You Need an Approval for Your Loan

The Importance of Loan Approval and Its Benefits

So, why would you need an “Approval” and not just a “Pre-Qualification” on your loan? Watch the video here, where Mike from Webber Realty Group explains the crucial differences and the potential cost-saving impact of getting a loan approval rather than just a pre-qualification.

Pre-Qualification: Understanding the Initial Step in the Loan Process with Limited Verification

A pre-qualification is not a true approval. It’s just the initial step where you discuss your financial situation with the loan office, but no verification takes place.

Approval: Providing Verified Documentation for the Comprehensive Process

The approval stage is where the buyer provides the lender with all of the necessary documentation for a thorough verification process. This includes verifying employment, reviewing tax returns, and examining bank statements. The result is a clear understanding of your loan options and a more accurate idea of the interest rate.

The Importance of Going Through the Entire Approval Process & Safeguarding Your Investment

It’s essential to go through the entire approval process. Lenders verify crucial details to determine how much they’ll loan you and what your payment will be. Skipping this step puts your initial deposit, inspection costs, and appraisal expenses at risk.

Seek Professional Guidance: Safely Navigate the Homeownership Journey to Protect Your Best Interests

Don’t fall into the trap of skipping the approval process. Watch our full video, “Approval vs. Pre-Qualification” and then reach out to us and let us guide you through the safest and most strategic path to becoming a homeowner.

Remember, it’s still free to have an agent represent you (as of February 2024) as the seller covers those fees. 

Expert Advice at Your Fingertips: Connect With Us Today

If you have any questions about the loan approval process, schedule a quick call with us. We’re more than happy to answer any questions and provide the guidance you need.

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