Pre Approval The First Step
Pre-Approval - The First Step
When beginning the home buying process the first step is to get a pre-approval, not a pre-qualification.
Many home buyers either don’t understand the difference, or, believe a pre-qualification is actually the better of the two. They are wrong.
The main difference is that a pre-approval is based off of verified information. That’s the key, verification. Plenty of lenders, and even some web site tools, will just ask for your information such as income, debts, assets, etc, and trust that the numbers you’re providing are accurate.
A pre-approval will verify these numbers by looking at your last two years of tax returns, two months of bank statements, last two paystubs, and many other documents. This provides a clear picture of your financial state.
It may be true that you’re currently making $60,000 annually now but last year you were unemployed for four months and before that your annual income was only $45k. This will affect your buying power and it’s best to know what you can afford before you begin the process.
There may be many beautiful homes in your price range of $300-$325 but if you’re already fallen in love with a McMansion, reality can be difficult to face.
Cory Tanzer epitomizes integrity, energy, hard work and creative services in every detail of your real estate transaction. A lifelong Chicagoan, Cory loves the city and surrounding areas. Which is obv....