Pre Qualify vs Pre Approval, NY Foreclosure Report

Written by Gabriella for Island Advantage Realty LLC

Generally when people buy a home they do so through the use of a mortgage held by a bank or lender. Even a few short years ago an interested home buyer could go to a lender and get a pre-qualified letter, which they would take to their realtor and together the client and the realtor would set out to find a house in the price range specified in the pre-qualification letter. Fast forward a few years, the economy has changed and the lending practices of mortgage companies have also changed.

In today's market a letter of pre-qualification is not strong enough to help you to buy a high value property on a short time line. While a pre-qualification letter can take weeks to prepare, it is not stringent enough to actually guarantee that you will get approved for the actual loan in this market. What it says to banks and other seller is that your status is still unknown. It will take additional weeks to determine if you can be approved.

It's much stronger and smarter to take the time to get pre-approved before you go home shopping. Pre-approval takes longer, but once you have it lenders know that you are in an actual position to negotiate with authority. Great valued properties move quickly in this market. Take the time to get pre-approved so that you too can move with lighting speed.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact Gabriella@IARNY.com

Island Advantage Realty, LLC specializes in Foreclosures and Bank Owned properties in the Metro NY and Long Island Areas. They are dedicated to educating home buyers and the home buying process in the Foreclosure and REO markets.