PreQualified vs PreApproved
As either a buyer or seller of Asheville real estate, it can be confusing to understand the differences between prequalified and preapproved. The two sound similar, but it’s important to understand their differences in order to be prepared and nimble on either side of the equation.
- Prequalification is a “soft” qualifications – essentially, a buyer speaks to their mortgage broker, who asks questions and performs initial basic research. The buyer’s credit isn’t pulled at this point, and there is typically no cost associated with prequalification. This is a great starting point and is step one in purchasing a home. From a seller’s perspective, a pre-qualified buyer is one who has expressed real interest in purchasing a home but may not be able to act immediately on a property.
- Preapproval is a “hard” commitment – here the mortgage broker sets out to prove the answers to the questions they asked during prequalification. The broker will pull the buyer’s credit, verify their income, and so forth. There is likely to be a fee associated with pre-approval, but it is a higher-value process than prequalification. As a seller, a preapproved buyer is as good as it gets without them having an actual approval letter from a bank – this type of buyer stands the best chance of getting to the closing table and making a deal.
To learn more about the differences between prequalification and preapproval and what they may mean for you as either a buyer or seller of real estate, give Asheville Cash Buyers a call at 828-222-6443 or visit AshevilleCashBuyers.com!