Pre-Qualification vs. Pre-Approval for a Bronx Home Loan?

Before you get a Bronx home loan you have two choices to pick - getting a Pre-Qualification or a Pre-Approval. Understanding the difference between loan qualification and approval might mean the difference between getting the property you want or not.

When looking into property, the first order of business is not to prospect the area, but to look into a Bronx home loan. By finding out your window of funds, you can more easily determine what you can afford and realize what might be out of your price range.  However, there are major differences between being pre-qualified and pre-approved.

To pre-qualified for a Bronx home loan you basically take a quiz about your finances. A loan officer will ask you questions about your credit, salary, and other general finances then give you an estimate of how much you could possibly borrow. It's merely a estimation that won't hold water in a lending institution so it doesn't guarantee you a loan. That means if a ‘general idea' regarding how much you can afford for a Bronx home loan this is what you want.

Now pre-approval takes everything a step further and dives directly into the process so you know for certain just how much you can get for your Bronx home loan. It involves more thorough questioning sessions and calculations. Once complete, the bank accepts your loan and sends you an official letter.

Why is this important to homebuyers?

This letter gives you a definite advantage on the field when competing against other buyers. Compared to other shoppers, pre-approval is a guarantee that your purchase will be much less eventful and complicated. These differences can make or break a deal with a seller sometimes so it's a wise decision to apply for a pre-approval rather settle for a pre-qualification.