Preapproved Vs. Prequalified: Which Is Better?

When you prepare to apply for a mortgage, you will come across financing terms like “prequalification” and “preapproval.” It’s important to understand the meaning of these terms, as this will guide your home search by allowing you to understand your buying power and show the seller that you’re a serious and qualified buyer.

At the fundamental level, preapproval and prequalification are types of mortgage approvals, and they refer to the steps a lender has taken to verify that a borrower can afford a mortgage. Here are a couple of points to keep in mind:

1. Many lenders use prequalification and preapproval interchangeably. Every lender handles mortgage approvals differently and the steps involved change from lender to lender.

2. No matter matter the type of mortgage you apply for, it’s not a guarantee that you’ll close the loan.

We’ll also explain how our preferred lender handles approvals, so you can know what to expect when you apply for a mortgage.

WHAT IS MORTGAGE PREQUALIFICATION?

A prequalification generally means that the lender collects some basic financial information from you to estimate how much house you can afford.

A prequalification is a ballpark estimate and is less reliable than a preapproval, which usually involves your lender checking your credit score and reviewing bank statements along with other financial documents.

As you begin searching for a home, realtors and sellers want to see you’ve been working with a mortgage lender so they know you can afford to buy a home. You’ll need a qualified real estate agent that can negotiate the best price and terms for you along with a solid preapproval letter.

VERIFIED APPROVAL

After you’ve been approved, you can level up to a verified approval by providing some documentation so your lender can verify your income and assets.

Verifying your income and assets along with your credit history is a more accurate estimate of what you can afford. It also carries more weight with a real estate agent and the seller, because they’ll know we verified that you can afford the home you wish to buy. You can provide your approval letter to your real estate agent and the sellers as proof that you can obtain a large enough mortgage to purchase the home.

SUMMARY

Getting approved early in your home search is a great way to know what you can afford, so you can narrow in on your dream house. To get started, apply for a mortgage and get premium pricing on your interest rate.

From Offer To Close

Inspections

Home Inspections and potential repairs are the number one reason sales do not close. Typically, buyers have a certain number of days in which to inspect the property and accept or reject the property based upon these mechanical and structural inspections. Save yourself time, money and disappointment and do the deferred maintenance now.

Home Warranty Plans

Home warranty plans go a long way to alleviate some of the risks and concerns buyers have when purchasing a home. For a modest price, the seller can provide a one-year warranty covering specified heating, plumbing, electrical, water heater or appliance breakdowns. Coverage under most plans commences as soon as the property goes under contract.

in Your Best Interest

Fixed Rate Real Estate knows how to market and sell real estate. A property that is properly marketed is not only much more likely to sell, but it’s much more likely to sell for a higher price. Our team will work to be a powerful negotiator on your behalf to ensure the highest possible return for you and pave the way to a smooth closing.

Throughout The Listing Process

• We help you prepare your home to make it look its best

• We stay in touch with you on a regular basis to discuss the market, in addition to following up on showings and just checking in

• We email feedback

• We keep you informed of all marketing and advertising efforts

• We monitor market activity

• We will always be available to you by phone and e-mail

A Smooth Closing

• We will closely monitor all lender and escrow activities throughout the process

• We concentrate on solutions, not problems

• We are sure that buyers remove contingencies according to the time frame specified in the contract

• We advise and assist in negotiation of all inspection items

• We represent your best interest at all times and in all negotiations

• We accompany you at closing

Important Reminders When Buying A Home

1.Buyers should avoid changing jobs, becoming self-employed, or quitting their job on or before closing day.

2. Avoid making any big purchases such as buying a new vehicle, appliances, boats, etc.

3.Buying furniture and new items for your home is exciting, but remember not to use credit cards or let any accounts fall behind.

4.Avoid switching banks and do not make large deposits in your bank accounts without first checking with your mortgage lender / loan officer.

5.Do not cosign on a loan or credit card for anyone before closing

TACOS

EL CAMINO

At El Camino, their mission is to create a unique gathering spot that nourishes both body and soul while enriching our community and supporting a good life for our staff. They are a certified green restaurant, they use locally-sourced ingredients whenever possible, and make all their food from scratch.

They are passionate about our local schools and donate a portion of our proceeds directly to them. El Camino believes in providing their staff with an opportunity to build a successful future doing something that they love.

They intend to show every guest the best experience possible. You are part of our family and we will do whatever we can to make you feel at home. We think we’ve got a pretty good thing going here and we want to share the goodness with you!

Address: 3628 W. 32nd Ave. Denver, CO 80211

HOURS:
Monday - Friday: Open at 11:00 AM for lunch
Saturday - Sunday: Open at 10:00 AM for brunch
Sunday - Thursday: Kitchen is open until 11:00 PM -  Bar is open until midnight
Friday - Saturday: Kitchen is open until midnight -  Bar is open until 1:00 AM

About The Tavern

Today, Highlands Square is full of funky retail shops and restaurants.  In the late 1990s however, this was a pretty run-down neighborhood.  El Camino was Al & Pauly's Liquor Store, lovingly decorated with bullet-proof glass, Schlitz Malt Liquor boxes, and lots of grime.  Even back in 1999 el Camino’s owner, Grant Gingerich, had a vision, and kept a close eye on the building with hopes of buying it.  In May 2002 he was able to do so, and after purchasing the property, the renovations began.  The first floor was gutted, the basement was filled in, and 200 square feet was added to where the kitchen is currently located.  After the renovation was complete, the doors to Swimclub 32 opened on May 11, 2004.

Swimclub 32 was an upscale wine bar/lounge that embodied worldly class, neighborhood comfort, and exquisite cuisine.  After 4 1/2 years and a drastically changing economy, Grant decided to transition into a concept that would embrace the entire community and become more of an everyday home to the neighbors.

Thus el Camino Community Tavern was born. 

Over the course of the next several years, what ultimately spurred our growth was the people under our roof that worked there every day.   From our kitchen staff to the front of the house, the key to our success was the passion that everyone shared to make sure that we were doing our best to exceed the expectations of our guests.  From our food, to our service, we slowly became a place that was favored by our community.  

While our menu changes seasonally, and we regularly update our décor, what we have made sure not to change is the level of service and hospitality that our community has come to expect, and the quality of our food, that is made fresh daily from scratch.

The creativity that sparked Swimclub 32 is still present today, and is found in many of the one-of-a-kind handcrafted pieces that fill our space today – mostly created by local artists.  Our custom tables are made from recycled rail car wood by Nick Petersen.  The bar stools are made from the same wood combined with metalwork by both Brian Mueller and Greg Neel. Sabin Aell created the leaf-shaped glass with aerial pictures printed on them that function as light fixtures, and Randy Rushton crafted the repurposed wooden screens.

We are also very involved with our local schools (Brown, Edison, Skinner, and North), donating food, beverages, and money.  We believe that education is something that everyone can get behind, and if we can make a small positive impact in this regard, we will consider ourselves successful.  The community around us constantly shows their support and we are more than happy to give back however we can.

Of course none of these custom touches matter without providing the highest level of hospitality that we can.  We truly want el Camino to be your favorite place, and if we fall short in that goal, we want to know about it so that we can constantly be growing and improving.  Thank you for being a part of our lives and continuing to help make el Camino Community Tavern a success!

Shop For The Best Interest Rate

A MORTGAGE BROKER YOU CAN TRUST

Zero Point Mortgage Services is committed to helping you find the right mortgage product for your needs. We understand that every borrower is different, and we offer a variety of products to meet your individual requirements. We make the process of securing a mortgage simple and straightforward by offering you the latest in financial tools that enable you to make sound financial choices.

Looking to shop for the best interest rates when buying a home, refinancing, or a home equity line of credit?

Call 303-910-2552

Zero Point Mortgage Services NMLS #1216108

5200 DTC Parkway Suite 300 Greenwood Village, CO 80111