Preapproved Vs. Prequalified

Is one better than the other? Are they different from one another? The answer is Yes, and Yes.

Generally when being prequalified, a lender will estimate what a buyer qualifies for based on the information they have been told by the buyer. The problem with this is that even the most informed buyer may not know what exactly what is being reported on their credit.

With a preapproval a lender will actually pull credit, verify a buyer’s income, assets, and obtain any other information the lender will need for final underwriting. In essence, the lender is preunderwriting the loan in order to determine what the buyer actually qualifies for. This method if far more accurate than a simple estimate based on unverified information. As a result, a buyer who presents an offer with a preapproval letter will generally have more sway over a transaction than one who only has a prequalification letter. Furthermore, being preapproved will lessen the chance of thing going bad at the last moment.

Should you have any questions or need further information, please don't hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521