Preapproved Vs. Prequalified

By Author: Abbie Smith
Total Articles: 45
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Each one of us can get quite excited when looking for a new home especially if it is our first time to do so. However, not all of us are aware of how to go about buying our first home. Although most people would say that you should look around first to know which house you would like to buy, this may actually be not the best practice.

Most financial experts agree that securing a loan should be your first step towards getting the home of your dreams. By doing so, you can be sure that you have enough money to cover the needed payments. Although most people might get quite excited when they learn that they have been preapproved or prequalified for a loan, you have to calm down first and take a look at the difference.

A person who has been prequalified for a loan means a loan officer has deemed you worthy of getting a loan. However, this does not necessarily mean that you would be able to get the loan. The bank still has to check on your credit standing before granting you your loan. In contrast, a preapproved loan is as good as cash and you can start looking for a house.

Once you have been given a preapproved ...
... Alberta home mortgage loan, you have to get in touch with your real estate agent and have them look for a home that matches your needs and wants. Make sure that you indicate your budget to them so that you do not have to waste time looking over houses that are beyond your means.

Of course, once you have narrowed down your search for the right home, you should personally inspect the homes in order to be sure that it is what you need and that it is worth the Alberta home mortgages loan that you have been preapproved for.

Since you have been preapproved for an Alberta home mortgage loan, you can expect the process to proceed fast and smoothly. If ordinarily the whole process would take about thirty working days, you being preapproved can actually shorten the window to two to three weeks.