Hey Jen! Do I really need an Approval or a pre-qualification letter to see houses? And what the heck is the difference! Hi my name is Jennifer Jennings with NextHome Realty Solutions BCS! AND YES…you need it…and YES There is a huge difference! It can end up costing you thousands of dollars and so…..many…… headaches if you truly aren’t qualified. I’ve helped save hundreds of buyers from making huge mistakes when purchasing that could cost thousands of dollars. So here’s the deal A prequalification is NOT a true approval It is the initial step in the home loan process where you just discuss your financial situation with the loan officer, but nothings verified. BASICALLY, it is a simple conversation where I tell a lender how much money I make, what debt I have and maybe answer a few questions… then the lender says, sure…based on what you have TOLD me, you can buy a house! The approval is where the buyer actually provides the lender with all of the necessary documentation to tell them what they are approved for, which loan product is the best option for them and give the buyer better idea of the interest rate. In the approval..the lender will pull credit and actually verify the information You provide. The lender has done things like verified your employment, seen your tax returns , looked at your bank statements, they’ve truly verified everything you will need in order to let you know how much they will loan you and what your payment will be.

Hey Jen!  Do I really need an Approval or a pre-qualification letter to see houses? And what the heck is the difference! Hi my name is Jennifer Jennings with NextHome Realty Solutions BCS! 

AND YES…you need it…and YES,there is a huge difference! Not having one can end up costing you thousands of dollars and so…..many…… headaches if you truly aren’t qualified. 

I’ve helped save hundreds of buyers here from making huge mistakes when purchasing a home in the Bryan College Station area that could have cost them thousands of dollars!

So here’s the deal

A prequalification is NOT a true approval!

 It is the initial step in the home loan process where you just discuss your financial situation with the loan officer, but nothings verified.  

BASICALLY, it is a simple conversation where I tell a lender how much money I make,what debt I have and maybe answer a few questions…then the lender says, sure…based on what you have TOLD me, you can buy a house!

The approval is where the buyer actually provides the lender with all of the necessary documentation to tell them what they are approved for, which loan product is the best option for them and give the buyer better idea of the interest rate.

In the approval..the lender will pull credit and actually verify the information you provide. The lender has done things like verified your employment, seen your tax returns, looked at your bank statements, they’ve truly verified everything you will need in order to let you know how much they will loan you and what your payment will be. 

It’s essential that you do this, otherwise you could stand to lose your initial deposit and any money that you’ve spent on things like inspections or the appraisal.

Also…trust me on this one…if  you go look at homes here in College Station that you THINK are in your price range….then you talk to a lender and find out your price range was wrong…

maybe you could have spent more…or less. You are going to have to start all the way over at looking for homes in the Brazos Valley…and that is precious time in this market that you don't want to loose!

So, Don’t fall into that trap, Remember-if you have any real estate questions..just call jen!and  let me walk you through the safest and most strategic way to become a homeowner.