Bronx Homes for Sale: Pre-Qualifications vs. Pre-Approvals

Whether you are a first-time buyer or an experienced homeowner checking out Bronx homes for sale, the lingo is bound to get tricky. Your real estate agent is there to help you navigate this unfamiliar territory, but sometimes it’s nice to understand what’s being said without needing to ask!

Today’s topic is mortgage pre-qualifications and pre-approvals. They sound alike, don’t they? While they both have their place in real estate, they are different tools to help a buyer make a sound financial decision. Before you continue your search for Bronx homes for sale, let’s brush up on what makes each type of approval unique.

Round One: Pre-Qualification Facts

  • A pre-qualification is a general estimate of how much a home buyer can afford based on self-reported information.
  • Buyers typically won’t go through a credit check to get pre-qualified to purchase Bronx homes for sale.
  • Buyers receive documentation stating that they are pre-qualified to purchase a home, but it might not carry much weight while they’re house-hunting.
  • A pre-qualification is often used as a tool for the buyer to minimize surprises during the pre-approval process.

Round Two: Pre-Approval Facts

  • A pre-approval is a more accurate representation of how much a bank is willing to lend a buyer to purchase a home.
  • To process a pre-approval, the lender must pull the buyer’s credit reports and verify their financial history with recent documentation.
  • A pre-approval indicates that the buyer is serious about their quest for Bronx homes for sale, and their offers have a higher chance of being accepted.
  • Pre-approvals typically last between two and three months. If your home search lasts longer, you’ll probably need to get another pre-approval.

One More Fact

Before you get a pre-qualification or pre-approval to purchase Bronx homes for sale in your hands, remember this: Neither document is a guarantee. Your loan must be underwritten before it’s a done deal regardless of your pre-approval status.

Kenny and Annecy Fuentes want to be the first people to welcome you to the Bronx! Get in touch with them today to learn more about currently-listed Bronx homes for sale.