What does it mean?
There is a difference between being pre-qualified and pre-approved to buy one of the condos for sale in downtown. The difference is a pre-qualification means that you may be able to get the loan based on skimming your income and other information. That&39;s why you can get pre-qualified credit card loan offers from time to time. The information usually comes from a list.
When you are pre-approved for a home loan, it means you can get that money. You can use it to buy one of the condos for sale downtown that you are in love with. This process involves asking for a loan, providing all your documents, and completing everything the lenders needed to get approved.
They will tell you the amount of money you can borrow and the rate of interest. The offer is going to be good for a given period. Generally, this will last up to 90 days after your approval. Armed with this information, you can start looking around. Once you have found the place on which you want to make an offer, they can help you proceed.
Know what you can afford
It does not make sense to look for condos for sale downtown that are outside your price range. With the pre-approval process, you are able to shop at the market price. You can use filters online to find those that are less than or equal to your approved amount. You can talk with a real estate agent and he can direct you to a property on the market that matches that amount as well.
If you can find one of the condos for sale in the downtown area for which you want to make an offer that is lower than the one that has been approved, it&39;s exciting! Not only does this mean that you can buy it, but it also means that you can reduce your monthly payments below what you know how to pay. That means more money to save or you can use it to pay off your mortgage early.
Make an offer
You have the power to negotiate with the pre-qualification for a mortgage loan. When you make an offer on one of these condos for sale in downtown, the seller realizes that you are already approved. It can be tempting for them to accept the amount you are offering rather than waiting for another offer to be offered to them.
Since you are already approved, you will no longer be rewarded after the offer, in the hope of getting the money. It is very annoying for some consumers to find the perfect place, but then they can not get the loan approval. Closing can also be completed in less time if the approval of your loan is already completed.
Sometimes there are credit report problems that prevent someone from getting the loan. It may be helpful to know earlier before examining the property. This gives you time to evaluate the situation and to try to solve it. You can then buy a place without having to be surprised by your surprises.