John Boss & Eric Meyer - Sankey Real Estate - North Attleboro, Attleboro, Plainville, Wrentham


If you’re a first-time homebuyer, odds are you’ve thrown the words “prequalified” and “preapproved” interchangeably. However, when it comes to home loans, there are some very important differences between the two.

For buyers hoping to purchase a home with a few missteps and misunderstandings as possible, it’s vital to understand the procedures involved in acquiring financing for a home.

Today, we’ll break down these two real estate jargon terms so that you can go into the mortgage approval process armed with the knowledge to help you succeed in securing a home loan.

Mortgage prequalification

Let’s start with the easy part--mortgage prequalification. Getting prequalified helps borrowers find out what kind and what size mortgage they can likely secure financing for. It also helps lenders establish a relationship with potential customers, which is why you will often see so many ads for mortgage prequalification around the web.

Prequalification is a relatively simple process. You’ll be asked to provide an overview of your finances, which your lender will plug into a formula and then report back to you whether or not you’re likely to get approved based on your current circumstances.

The lender will ask you for general information about your income, assets, debt, and credit. You won’t need to provide exact documents for these things at this phase in the process, since you have not yet technically applied for a mortgage.

Prequalification exists to give you a broad picture of what you can expect. You can use this information to plan for the future, or you can seek out other lenders for a second opinion. But, before you start shopping for homes, you’ll want to make sure you’re preapproved, not prequalified.

Mortgage preapproval

After you’ve prequalified, you can start thinking about preapproval. If you’re serious about buying a home in the near future, getting preapproved will simplify your buying process. It will also make sellers more likely to take you seriously, since you already have your financing partially secured.

Mortgage preapproval requires you to provide the lender with income documentation. They will also perform a credit inquiry to receive your FICO score.

Mortgage applications and credit scores

Before we talk about the rest of the preapproval process, we need to address one common issue that buyers face when applying for a mortgage. There are two types of credit inquiries that lenders can perform to view your credit history--hard inquiries and soft inquiries.

A soft inquiry won’t affect your credit score. But a hard inquiry can lower your score by a few points for a period of 1 to 2 months. So, when getting preapproved, you should expect your credit score to drop temporarily.

After preapproval

Once you’re preapproved for a mortgage, you can safely begin looking at homes. If you decide to make an offer on a home and your offer is accepted, your preapproval will make it easier to move forward in closing on the home.

Once the lender checks off on the house you’re making an offer on, they will send you a loan commitment letter, enabling you to move forward with closing on the home.


This Condo in East Bridgewater, MA recently sold for $220,000. This Townhouse style home was sold by Bay State Home Sales Team - Sankey Real Estate.


24 Andrew Rd, East Bridgewater, MA 02333

Condo

$219,900
Price
$220,000
Sale Price

5
Rooms
2
Beds
1/1
Full/Half Baths
Come see this beautiful 2 bedroom, 1 1/2 bathroom Townhouse style condo located in Pomponoho Pines. One is nicely welcomed by the warm and inviting floor plan of this well-maintained home. The spacious eat-in kitchen offers recessed lighting & a slider to the back deck. Large light and bright living room w/ a picture window is perfect for entertaining. The finished lower level that offers recessed lighting & carpeting could be used as a family room, a toy room, a home gym or an office. Two generous sized bedrooms w/ plenty of closet space. The master bedroom has a ceiling fan & includes a slider to a rear balcony. Enjoy & relax on the deck in the private fenced in back yard. Within walking distance to Robbins Pond that allows fishing & small boats. Two assigned parking spaces & plenty of guest parking. Some additional features include a walk-up attic, good storage space, & laundry in the unit. Close to public transportation, golfing, shopping, & restaurants. Set up your showing today!

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This Single-Family in Blackstone, MA recently sold for $251,000. This Bungalow style home was sold by Bay State Home Sales Team - Sankey Real Estate.


7 Howard St, Blackstone, MA 01504

Single-Family

$250,000
Price
$251,000
Sale Price

5
Rooms
3
Beds
2
Baths
This beautiful bungalow is the perfect size whether you are down sizing or just starting out. Before entering you will notice a wonderful farmers porch that welcomes you in.The main level offers a mud room, living room, dining room, two good size bedrooms, full bath and a kitchen. Both bedrooms have ceiling fans. The living room and kitchen both have recessed lighting. The kitchen also features two ovens, granite countertops, and a peninsula. As you go up the stairs to the second floor, you will enter into the master suite, that has a lot of natural lighting. You will also be able to enjoy entertaining on the back deck in the warmer months! If you enjoy exploring the outdoors, the Blackstone River Greenway is only a short distance away! You won't want to miss out on this gem.

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Creating curb appeal is an essential ingredient to attracting potential buyers to a house for sale. Similar to the concept of "dressing for success," when you make a strong first impression, your chances for producing positive results are greatly enhanced.

Looking good from the outside is the first step to capturing people's interest, but that's only the first of several hurdles that you have to clear. The last thing you want to do as a home seller is disappoint prospective buyers when they start looking around inside. That's why it's important to start strong and finish strong! While that may be easier said than done, it's a principle of success you can't afford to ignore.

Once you put your house on the market, there are two factors that could potentially work against you: the elements of time and competition.

  • Time is of the essence: Time can either be your friend or your adversary, depending on how long your house has been on the market. When house hunters see the words "just listed," it creates a feeling of excitement and urgency. For many eager home buyers, those two words mean there's a fresh opportunity to discover the house of their dreams... or at least a reasonable facsimile! It's especially enticing to frustrated buyers who have already looked at a lot of homes, without having found the right one yet. When a new house is listed and put on the market, couples will be thinking and saying "Maybe this house will be the one!" Your challenge as a home seller is to do everything possible and cost-effective to live up to their expectations! An important factor to keep in mind is that the longer a house is on the market, the less appealing it generally is to prospective buyers. Once a house has been languishing on the market for more than a couple months or so, it also puts the sellers at a negotiating disadvantage.
  • Competition is a fact of life: Buying a house is weighty decision. No one takes it lightly, and few buyers are going to make an offer on a house if they haven't looked at several others, too. Well-organized house hunters will have wish lists, "must have" requirements, and detailed notes and recollections about how each house stacks up. So it's important to work with your real estate agent to present your home in its best possible light. When your home compares favorably to other similar properties on market, your chances of getting it sold within a reasonable period of time are greatly improved.
Maintaining an appealing exterior will help give you an inside track in the competitive real estate market, but making sure your property is in good shape from top to bottom will often be the deciding factor in how soon you get to the finish line!


10 Capron Street, Attleboro, MA 02703

Rental

$900
Price

3
Rooms
1
Beds
1
Baths
Heat and Hot Water Included! First Floor. 3 Rooms. 1 Bedroom. Next to Train Station, Perfect For Commuters! No Dogs. No Smoking. 1 Parking Spot Off Street. Immediate Occupancy. Group Showing Sunday 12 to 1. Monday 12-1 First, Last and $300 Security.
Open House
No scheduled Open Houses

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