Market Trends

Preapproved vs. Prequalified. Is one more important than the other?

Do you know the difference between being preapproved and prequalified when buying a home? And is one more important than the other in today’s market? If not, you must read on….

First of all, what does Prequalified mean?

Getting prequalified for a mortgage loan requires that you select a mortgage lender (Don’t know who to call? I have a few that I worked with for years and come highly recommended) to work with and obtain your loan. A Mortgage Pre-qualification is a promise from the lender that you’re qualified to borrow up to a certain amount of money at a specific interest rate, subject to a property appraisal and other documentation.

So what does Pre-approved mean?

Being preapproved means that you have gone through the pre-approval process with a lender. It includes filling out an application, providing financial documentation, and a credit check. A mortgage pre-approval letter is a document from a lender that states you are preapproved for a loan for up to a specific dollar amount. Read more

So to answer the question, Is one more important than the other?

Being preapproved can make the difference when you are ready to make that offer in today’s market. And unfortunately, we are starting to see a pattern of deals falling through due to financing. At what seems like the eleventh hour, several buyers are learning that the amount they were prequalified for was overestimated, and they can no longer afford the house they fell in love with and have to walk away. Being preapproved can help alleviate this type of stress.

There are a lot of moving parts to the home buying journey. If you need some help talking through this financial piece, call me at 317-625-0655. I am here!

For more Helpful Resources on Financing, Click here

Just Released: February Market Report

MIBOR just released February numbers for the Central Indiana housing market. The key takeaways are:

Download County Specific Market Reports Here

What are the EXPERTS saying:

“With inventory at a record low before the start of the spring selling season, we can expect the market to be challenging for buyers for these next few months. Working with a REALTOR® can help prospective homeowners to be prepared in making the best offer.” – Shelley Specchio, MIBOR CEO

When you are ready, give me a call at (317) 625-0655. No doubt, the market continues to overwhelm many buyers, though let me show you what is possible—ONE STEP AT A TIME.

Frustrated? Let’s Try This Approach

For Today’s Buyer, it is tough. The Market remains tight, and nothing at the present moment is showing that it will loosen any time soon.

Yes, some houses are sitting for a while, while others are getting 20 offers in a weekend. And winning a bid when you are 1 of 20 is a nightmare. So the struggle is very real and very frustrating.

Last month, I sat down with a client to have a ❤️ heart-to-heart. Since time was not in his favor, we needed a new approach. What did that look like: He needed to look at properties that were winnable.

What do Winnable Homes look like:

Not built within the last 30 years
Not in pristine condition
Need about 10-20K of home improvements

Hey, I get it…it doesn’t sound very appealing at first. And it didn’t sit well with him until we started talking through the details. Like many, he was looking for a move-in-ready home. With this new approach, he could still get that move-in ready home, and it would be exactly what he was looking for.

Seem like a pipe dream? Let me assure you that it is possible when you have the right partner with experience in all aspects of the industry.

If you are interested in hearing more, give me a call at 317-625-0655 . Let’s start looking at properties that are winnable instead of going to war!