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Real Estate Tips
Financing Your Home >Qualifying For A Loan

It is useful for home buyers to understand the difference between loan pre-qualification and pre-approval. Pre-qualification, which in today's marketplace is usually done by mortgage brokers, means working with the buyers to determine how much they can afford and which loans are the most likely to be available to them. Loan pre-qualification can save buyers time and money and can even be a bargaining tool with a seller. However, pre-qualification is not the same as loan "pre-approval". The mortgage broker can often get the buyer a pre-qualification letter, but pre-approval must be issued by the mortgage lender.

Pre-approval means that the lender has definitely committed to loaning the buyer money, once the house itself is approved. Since it is a much stronger pledge, it is a much more valuable negotiating tool. When you hear someone talking about "pre-approval", they are referring to specific acknowlegment by a lender that they are willing to loan the buyer money. The real estate agent can be of assistance in this process.

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Real Estate Trivia
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What is the world's longest frontier?

A 
At 3,987 kilometers (3,987 miles), the border between Canada and the U.S. is the longest in the world.
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Bill Cullin, REALTOR®, real estate agent and broker for Lewes, Rehoboth Beach, Bethany Beach and Dewey Beach, Delaware home listings, property and land for sale - NUMBER1EXPERT

Bill Cullin
Long & Foster Real Estate Inc

37156 Rehoboth Avenue Ext Suite 5
Rehoboth Beach, DE 19971
302-841-7147
Fax: 302-227-8165
billcullin@NUMBER1EXPERT.com


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