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Pre-approval or Pre-qualification?

by Linnea Lavell

If you're considering the purchase of a new home, you may be concerned with the issue of finance. Attaining the right mortgage is a key step in the home buying process, but it doesn't have to be a stress-inducing one. Most lenders offer prequalification, pre-approval or both to help you know where you stand. Let me explain the difference between prequalification and pre-approval:

  • Prequalification: Prequalification is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information aren't validated for prequalification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however. 
  • Pre-approval: Pre-approval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.

Regardless of which option you utilize, or even if you take both steps, you'll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage?

If you would like more information on how either process can help you get into the home of your dreams, give me a call. I'd be happy to answer any of your real estate needs.

Avoid Regrets - Get a Home Inspection

by Linnea Lavell

The home buying process is a lengthy one, and many buyers rush through or even forgo the home inspection. It's important that you don't make the same mistake! Professional home inspections can save you time and money, or even prevent you from making a disastrous deal. In case you're not convinced, I've compiled a quick list of some serious home defects that can be found during a home inspection:

 

  • Defect #1: Bad Foundation
    Unless your agent can negotiate a price reduction to cover cost, walk away.

  • Defect #2: Worn Roof
    Most likely it will need to be replaced. If the seller will not do so, negotiate a lower price.

  • Defect #3: Termite Infestation
    The house is probably in need of expensive structural repairs. Unless the seller is willing to help pay, it's probably not a good investment.

  • Defect #4: Outdated Wiring
    This can be expensive to correct, and is a dangerous problem. Your agent should negotiate with the seller after getting an estimate from an electrician.

  • Defect #5: Damaged Shower Pan
    Get an estimate from a contractor if you find water under the shower, and your agent can negotiate with the seller to cover costs.

Protecting your investment, especially one as special as a new home, is crucial. An expert home inspection is often the most important step in securing that protection. More tips on home buying are available on my website. If you'd like to talk more about home inspections or any of your real estate questions, please call. I'd love to hear from you.

 

Displaying blog entries 1-2 of 2

Contact Information

Photo of Linnea Lavell Real Estate
Linnea Lavell
Lavell Realty, LLC
P.O. Box 1243
Little Elm TX 75068
214-280-5900
214-810-5906
Fax: 877-488-1740