Pre-Approval or Pre-Qualification? What You Need to Know
Pre-approval is a more detailed process. Buyers must provide proof of their financial details, such as:
Bank statements
Pay stubs
Savings and investment records
The lender reviews these documents to determine whether the buyer can actually afford a mortgage. Sometimes, the pre-approval process reveals that the buyer’s initial answers during pre-qualification were incorrect, filtering out buyers who wouldn’t qualify for a loan.
Buying & Selling Your Home. What Should Come First?
Deciding whether to sell your home before buying a new one or vice versa is a major financial and logistical decision. Selling first provides financial clarity and eliminates the risk of carrying two mortgages, but it can leave you scrambling for temporary housing. On the other hand, buying first allows for a smoother transition with only one move, but it comes with the challenge of managing two mortgages if your current home doesn’t sell quickly.
Navigating both transactions at the same time requires careful planning. Limited buying power, coordinating showings, and the possibility of a delayed sale can add complexity. By working with an experienced real estate agent and considering options like bridge loans or lease-back agreements, homeowners can create a smoother transition. Ultimately, the best approach depends on personal finances, market conditions, and long-term goals.