One of the most important decision the Seller makes is to review and accept buyer’s pre-approval or pre-qualification letter that accompanies the Financial Contingency term of the offer.

Time is the essence about for the sellers. Once the offer is accepted, how sure can they be about buyer’s lender performs well by the closing date since the sellers must vacate by the closing date at 9pm unless indicated differently in the contract.

It is important that the buyers prepare well with their lender prior to writing up the offer. Are they pre-approved or pre-qualified?

JP Morgan Chase explains 10 important things to know about mortgage and one of them is Pre-Qualification vs Pre-Approval.

“Mortgage prequalification and mortgage preapproval are steps most people take before making an offer on a house. However, they aren’t the same thing.
Being prequalified or conditionally approved for a mortgage is the best way to know how much you can borrow. A prequalification gives you an estimate of how much you can borrow based on your income, employment, credit and bank account information.

Preapproval comes from a lender who has analyzed your finances carefully. They’ll tell you how much you may be able to borrow and what your interest might be. Mortgage preapproval is usually done after prequalification, but before you find a home. Preapproval doesn’t guarantee you’ll get a mortgage, but if all key factors stay the same it’s very likely.”

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