It is useful for home buyers to understand the difference between loan pre-qualification and pre-approval. Pre-qualification, which in today's marketplace is usually done by mortgage brokers, means working with the buyers to determine how much they can afford and which loans are the most likely to be available to them. Loan pre-qualification can save buyers time and money and can even be a bargaining tool with a seller. However, pre-qualification is not the same as loan "pre-approval". The mortgage broker can often get the buyer a pre-qualification letter, but pre-approval must be issued by the mortgage lender.

Pre-approval means that the lender has definitely committed to loaning the buyer money, once the house itself is approved. Since it is a much stronger pledge, it is a much more valuable negotiating tool. When you hear someone talking about "pre-approval", they are referring to specific acknowlegment by a lender that they are willing to loan the buyer money. The real estate agent can be of assistance in this process.

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Kelly Ellerbrake
RE/MAX Preferred
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Kelly Ellerbrake has been a licensed Realtor for 16 years. She has been a member of the Scott Air Force Base and surrounding communities since 1980. As the daughter of a retired Air Force Colonel, she understands relocating! Kelly is a Certified Residential Specialist (CRS) and has helped more than 600 families relocate by assisting and supporting them with her unique buyers and sellers programs! Contact Kelly today to see why she is the area's #1 Real Estate Expert!

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