Applying For Mortgage Preapproval Can Help You Get Your Dream Syracuse Home
What’s the difference between mortgage preapproval and mortgage prequalification?
Purchasing your dream home requires you to consider a number of things. There’s location, property, budget, and mortgage.
Especially with mortgage, we’re often told that we should get preapproved for a mortgage, or that we should consider prequalifying for one, but how do they differ?
A layman is bound to confuse both preapproval and prequalification for a mortgage for each other, and while both are helpful, only one can get you closer to owning your dream home in Syracuse.
So what’s the difference between mortgage preapproval vs. mortgage prequalification?
Let’s take a look.
What Is Mortgage Prequalification?
Mortgage prequalification and mortgage preapproval are similar.
When it comes to mortgage prequalification, a lender you are working with will ask you a number of questions about your income, credit score, and assets, as well as other information to get a clear view of your financial situation. These questions allow the lender to offer you an estimate of your loan, a hypothetical figure based on what answers you give your lender.
The key word here is: hypothetical. The mortgage prequalification allows you to have an idea of the estimated cost of your loan. It is a good option for buyers still considering whether or not to work with a mortgage lender, as it allows you to compare and contrast the cost between potential lenders.
Now, how does this differ from getting preapproved for a mortgage?
What Is Mortgage Preapproval?
The mortgage preapproval process is similar to the mortgage prequalification process. Both begin with a set of questions created by your mortgage lender to assess your financial situation and give you an idea of the cost it will take to purchase your Syracuse dream home.
However, there is a key difference. Where a mortgage prequalification is hypothetical, mortgage preapproval offers you a verified, accurate figure on your mortgage loan.
During the mortgage preapproval process, apart from just answering questions regarding your financial state, your lender will also ask you to verify your finances with supporting documents.
This means your lender will request to verify your income, credit score, and assets with your bank statements, tax returns and W-2s. Confirming your financial situation, and the most accurate version of it as possible allows your lender to gauge the maximum amount you can spend on a home.
This information will also let you know the monthly mortgage payment for your maximum purchase price, and what the mortgage rate will be for your first term.
Why Apply For Mortgage Preapproval?
Mortgage Preapproval Shows That You Are Serious About Purchasing A Home.
Getting preapproved for your mortgage means you know the costs of spending on your home, and are willing to pay those costs. Mortgage preapproval also informs your house-hunting options, allowing you to consider properties you might have otherwise thought you could not.
Mortgage Preapproval Shows Realtors That You Are A Qualified Buyer.
More often than not, mortgage Mortgage preapproval might win you your property. If a seller is considering between multiple buyers, they will always choose to sell the property to the buyer with a preapproved mortgage.
Mortgage Preapproval Gives You Room To Negotiate.
Your mortgage preapproval allows you the flexibility to bargain and compromise with potential sellers, who already know that you can offer the amount they want. This will make the seller more amenable to consider compromises you offer, since your preapproval is a sign of a sure sale.
Mortgage Preapproval Allows You To Close Faster.
Your mortgage preapproval means that you will cut time on the closing process. Most closings tend to get delayed due to both buyer and seller awaiting mortgage approvals. Being preapproved means you can skip this time and move into your dream Syracuse home faster.
Need Preapproval? Talk To Us ASAP!
Getting preapproved for a mortgage is an advantage for any hopeful home buyer. If you’re hoping to get preapproved for a mortgage in Syracuse, NY, we’d be happy to assist you!
Procopio Team at Hunt Real Estate is here to guide you along the mortgage preapproval process. If you are located in Syracuse, give us a call at 315-350-0571 to get started.
We offer a wide range of real estate services, including buying and selling properties, mortgage approval, and more.