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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Is pre-qualification enough
to start home shopping?
Our mortgage guy told us if the REA asks, tell them we are pre-qualified and if they need paperwork he will fax them something stating that we are.
Does this sound right?
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Posted 3/22/07 4:12 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Is pre-qualification enough
Should be.
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| Posted 3/22/07 4:29 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Is pre-qualification enough
my agent asked if we were pre-qual OR pre-approved. Pre-approved is better but at the time we didn't know anything. We had a pre qual letter and it was fine.
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| Posted 3/22/07 4:29 PM |
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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Re: Is pre-qualification enough
Pre-Qual is perfect for home shopping!
Pre-Approval will be requested when you go a step further than placing an offer on a home. 
Message edited 3/22/2007 4:36:53 PM.
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| Posted 3/22/07 4:36 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Is pre-qualification enough
there's a HUGE difference between a pre-qual and a pre-approval.
pre-qual...you just give some information over the phone and based on hearsay, they type you up a letter stating you can buy a house.
pre-approval...you actually turn in supporting documents, your credit is run, they review your monthly mortgage payments and make sure that it is something you can afford. it gives you a better idea of what price range you should be looking in.
you should DEFINITELY get an approval. alot of REA wont take a pre-qual seriously (i know i dont).
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| Posted 3/22/07 5:29 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: Is pre-qualification enough
Posted by alnem
there's a HUGE difference between a pre-qual and a pre-approval.
pre-qual...you just give some information over the phone and based on hearsay, they type you up a letter stating you can buy a house.
pre-approval...you actually turn in supporting documents, your credit is run, they review your monthly mortgage payments and make sure that it is something you can afford. it gives you a better idea of what price range you should be looking in.
you should DEFINITELY get an approval. alot of REA wont take a pre-qual seriously (i know i dont).
Ditto.
It's very hard to "live" in your house when it's listed for sale. I will not take a person out to see homes without a preapproval letter. I will send them listings and notices of open houses that meet their criteria but I will not make a special appointment with the family to take a buyer over w/o a preapproval letter. It's not fair to the family selling their home to have "window shoppers" making appointments when they could attend an open house instead.
A friend of mine requires buyers to submit proof of funds i.e., bank statements and such. These documents are given to HER rather than the banker  I personally would never give a real estate agent my bank info but so far she has not had anyone say no to her request for proof of funds
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| Posted 3/22/07 6:01 PM |
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AllyandMike
LIF Infant
Member since 4/06 64 total posts
Name:
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Re: Is pre-qualification enough
You do not need a preapproval in most cases. All we got was a prequal and we never needed to get preapproved. I wouldn't bother going through the hassle if the sellers don't specifically request that you get preapproved.
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| Posted 3/23/07 9:00 AM |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: Is pre-qualification enough
Posted by alnem
there's a HUGE difference between a pre-qual and a pre-approval.
pre-qual...you just give some information over the phone and based on hearsay, they type you up a letter stating you can buy a house.
pre-approval...you actually turn in supporting documents, your credit is run, they review your monthly mortgage payments and make sure that it is something you can afford. it gives you a better idea of what price range you should be looking in.
you should DEFINITELY get an approval. alot of REA wont take a pre-qual seriously (i know i dont).
But I did all of the things associated with a pre-approval. He pulled our credit, I gave him bank statements, pay stubs and he went over all of the financials on the phone. Hmm.
I'm sure I can get pre-approved relatively quickly then.
Message edited 3/23/2007 9:04:19 AM.
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| Posted 3/23/07 9:02 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Is pre-qualification enough
We gave LIHP all our documents and we just got our preapproval from BOA yesterday.
The guy from BOA made a good point though. Be careful with the amount. If the REA or owner sees the preapproval for more than your offering for the house, that may give them ideas that you can afford more.
We are looking for 25k less than we're approved for. It's a number we're comfortable with, and unless you have credit challenges, you'll most likely get preapproved for a hell of a lot more than you think you can afford.
The way we left it was that when we make an offer, we'll call BOA back and let them know the amount. They can draw up a new preapproval at that time, since it has to be renewed every 3 months anyway, and we won't be ready to buy for another 6 months.
Hope this helps! 
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| Posted 3/23/07 9:53 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Is pre-qualification enough
my $.02...
if you're going to go through the hassel of already pulling your documents and credit check, it's worth having the pre-appoval. lets you know what you can and cannot afford. it also makes you a more credible buyer and sellers will take your bids much more seriously.
good luck to you
hth
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| Posted 3/23/07 10:02 AM |
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