MOBILE, Ala. (WKRG) — Sue and Jimmy Lyon from Exist Realty join WKRG News 5 for this Take 5 to talk about a critical part of the home buying process, getting a purchase loan. They also tell us why you want to start the loan process before you begin looking for houses.
Many buyers have questions about loans. Sue and Jimmy Lyon walk us through the difference between getting pre-qualified and pre-approved for a purchase loan.
“Both are good,” Sue told us, “but one is better.”
She broke down the differences:
- Pre-qualified: gives you an idea of how much you can afford and does not include any formal finance or credit history inquiries
- Pre-approved: requires a formal finance inquiry and credit check. It also gives you a conditional commitment of how much your loan will be for.
How do you get pre-approved? Jimmy Lyon tells us when you’re ready to buy a home, you go to a banker or mortgage broker — and Exit Realty has a lot of great ones they can recommend. Sellers want to deal with buyers who have cash or are pre-approved.
Getting pre-approved before you start looking at houses means you are ready to buy when you find the right one.
For more information about buying a home, you can call Exit Realty Lyon at (251)-209-3954 or text “INFO” to 85377.