Having a competitive edge is of crucial importance in many real estate markets. Though 50 percent of sales of homes in Florida go to all-cash buyers, financing a home is still possible.
However, it may become important to show proof of your mortgage-securing abilities. Thus, you can aim for pre-approval or pre-qualification.
South Florida Agent Magazine looks at trends with sales. As mentioned, real estate, especially in Florida, is an incredibly competitive and fast-paced market that does not leave a lot of room for trial and error.
To get the true edge over the competition, you will want to either get pre-approval or pre-qualification for a mortgage. But what are the differences between the two?
Pre-approval involves submitting an application to a mortgage lender. The lender must also receive approval to do a search into your creditworthiness. During this process, you will learn your potential estimated monthly payments, what your interest rate will look like, and what the total amount you can borrow looks like.
On the other hand, pre-qualification is an easier and generally faster process. The lender simply tells you what approximate mortgage value you will likely qualify for. They will need your permission to do a basic credit check and may also ask for some personal information from you, but it is much less involved than the checks from pre-approval.
Both have their benefits, though people with pre-approval tend to have more of a competitive edge. It is possible to get pre-qualified before starting the home search and to get pre-approval before making an offer, too.