Unless you are doing a “cash” purchase, many sellers want to know if you can in fact afford the home they have on the market.  You as a buyer also will want to know how much home can you afford and if your purchase transaction will go smoothly, or as smoothly as possible.  The terms Pre Qualified and Pre Approved will often come up in a conversation.  While similar these two terms are functionally different.

Pre Qualified (pre qual) means you have had a very basic income and credit check done.  However, this does not mean you have obtained, or even qualified for a loan.  Pre Approved is different however.  When you have been Pre Approved, it means you have qualified for a loan and more importantly, you know how much loan you are eligible for.  When you are Pre Approved, you are ready to shop with confidence that the home you fall in love with will be within your means.

I always suggest to my clients to seek out a lender who will sit down with you and work on pre approving you for a loan.  A lender will sit with you and go through all the details, give your credit counseling, if necessary and if at all possible will give you a letter or pre approval that you can show a potential seller.

Most lenders will perform this for you free of charge.  After all they hope to work work with you on your home purchase.  One Loan Officer I have had outstanding experience with in providing Pre Approval services to my clients is James Schell at Infinity Mortgage Holdings, LLC3420 Executive Center Dr. Austin, Texas 78731. 512-469-9058.  I invite you to speak with James about Pre Approval and credit counseling.