Know the Difference Between Being Pre-Approved and Pre-Qualified for a Pensacola, FL Mortgage

Know the Difference Between Being Pre-Approved and Pre-Qualified

Pre-approved and pre-qualified are two terms Pensacola, FL home buyers often misunderstand during the mortgage process. By the end of this post, you will be able to understand the difference between the two.

Pre-Qualified VS Pre-Approved

You are considered to be pre-qualified for a Pensacola, FL  mortgage when a lender performs a basic review of your financial situation. Usually pre-qualification occurs early on in the mortgage process. For a lender to pre-qualify you, the lender will commonly ask for information pertaining to income, debts, and assets. Pre-qualification will give you an estimate of what size mortgage you should be able to afford and qualify for.

To become pre-approved for a Pensacola mortgage, you have to go through a more in depth process. A formal application and all financial documents will need to be provided to the lender. The lender will then take all of the collected documents and determine the amount you are approved for.

Why Should I Get Pre-Approved?

The lender will send a letter to you once the review of your financial documents is completed. The letter will state the official dollar amount you are approved to borrow from the lender, the approximate interest rate of your mortgage, and when the pre-approval will expire.

When you know the dollar amount a lender has pre-approved you to borrow, it gives you a few advantages. You can now focus  your search on Pensacola, FL properties that are in your price range. Without being pre-approved, a buyer is playing a guessing game and does not truly know if they can afford the house they want–unless they are paying cash. Even if a buyer is pre-qualified for a Pensacola mortgage, they are not sure if they are looking at homes that are truly in an affordable price range.

Being pre-approved for a Pensacola mortgage will increase the probability of a seller accepting the offer you place on their property. A seller is more likely to accept an offer from a pre-approved buyer because they have already started the mortgage process. Some seller’s do not want to take a chance on a buyer that is not pre-approved because it could cause delays when it comes to closing on the house.

Greater Pensacola, FL Real Estate Experts – Making It Happen for Buyers and Sellers!

Grand Realty is a greater Pensacola real estate company that opened its doors in June of 2003. We strive to help all of our clients with their individual real estate needs, whether it’s buying a home in Pensacola FL and the surrounding area or selling their existing Pensacola property.

We have approximately 30 agents with a wide range of specialties that include:

  • Pensacola new home buyers
  • Pensacola short sales
  • Pensacola Foreclosures
  • Pensacola Investment properties
  • Pensacola commercial properties
  • Pensacola vacant land
  • Pensacola water front properties

Grand Realty is also proud to say we have agents who are bilingual, Spanish and Chinese that are placed throughout a good majority of Northwest Florida including Pensacola, Milton, Pace, Navarre, Perdido Key, Jay, Cantonment, Gulf Breeze, and Navarre. The Broker of Grand Realty is also licensed in Alabama. Please feel free to email or give us a call, and from everyone at Grand Realty, thanks for your business!

Grand Realty
4843 West Spencer Field Road, Pace, FL 32571
Office Phone: 850-995-3222
Office Fax: 850-995-3221

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