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    First time buyer tips and strategies – Lender Pre approval versus pre qualification

    We get asked this often by our real estate buyers and sellers. From the sellers, they want to know the difference because those submitting offers, with their lenders “approval” letter, differ vastly.

    Borrowing money, what you need to knowFrom the real estate buyers, because their lender maybe speaking too fast and not answering enough questions.

    But the breakdown of the pre approval versus pre qualification is this.

    Pre Qualification, in Slang could be called a Pre Qual letter. These are typically given with only a preliminary research done on the applicant. The Applicant is the one applying for the home loan. There could be more than one applicant.

    The more reputable lenders may give an estimate over the phone, after hearing the applicants financials. However, to get anything in writing, even a pre qualification letter, that requires more documentation to be provided by the person applying for the loan.

    The more established lenders may take a few days, after receiving the Tax returns, the paycheck stubs, any court judgement paperwork and all other associated required paperwork, in order to get a pre qualification letter produced.

    With pre approval, they have already completed the process, verifying all information obtained from the applicant and this puts the buyer or refinancer in a much stronger position with the lender.

    There is a third type of approval. This is known as full Underwriter Approval. They have taken all of the borrowers paperwork to the underwriter aka, the bean counter,(no offence intended), and they have looked over the file, verifying all components, and have Blessed the loan.  This is the strongest position to be in as a real estate buyer or a person seeking to refinance.

    Reach out to us when you are ready and feel free to get on our YouTube First Time Buyers playlist that will give you other First time or savvy real estate buyer tips when it comes to real estate dealings.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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