Before starting your West Knoxville home search, it is extremely important to talk with a loan officer to see how much home you can afford. You’ll often hear the terms pre-qualification and pre-approval used interchangeably. Unfortunately, the terms are not the same. Here is why you should consider getting pre-approved for a loan before starting your West Knoxville home search, instead of getting pre-qualified.
What’s The Difference Between Pre-Qualification and Pre-Approval?
A pre-qualification is just an estimate of what you can afford based on what information you give to your lender. A pre-qualification doesn’t include include any income verification or pulling your credit report. It’s more or less just an estimate of what you can afford.
When you get pre-approved to buy a West Knoxville home, a lender makes a commitment to provide you with financing and you make a commitment to use them for your loan. Generally, getting pre-qualified involves some time of application fee. You will also provide the lender with all documentation for your income, assets, and debt.
Why Does It Matter?
Before starting your West Knoxville home search, you’ll want to be certain of how much your can afford and if you can receive financing. When you’re pre-approved the documentation that you provide is given the same underwriting scrutiny as a loan, so you’ll have more certainty that your loan will be approved. In addition, a pre-approval letter can look better to a potential seller.
Are you thinking about buying a West Knoxville home this year? If there is anyway Knoxville Home Team can assist you, please let us know, you can give Rick at call at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected].