Are you thinking about buying a house right now and want your offer to be seriously considered? In this video, I’m going to share a simple way to get your offer to stand out in the eyes of the seller. I’ll explain one key difference that will help you get the home you truly want.

Preapproved Or Prequalified?

The key to standing out in a seller’s market has to do with the difference between being preapproved and prequalified. Anybody can go online and get a preapproval letter. The unfortunate part is that right now that preapproval letter doesn't hold a lot of weight.

Being prequalified, however, is a completely different thing. When you get a preapproval, the lender is relying solely on the information you provide. When you get prequalified, the lender actually looks at all your information—like your income docs, your base statements, and your credit score—to get a much more clear financial picture.

Why It Matters

A prequalification is super important, especially in a seller's market. This is because it shows your clear financial picture and how strong it is, especially if you're going up against multiple offers—some of which could even be cash. On the other hand, a person who only gets pre-approved doesn't really know what they're qualified for or how much that payment is going to be every month. Their picture is far hazier than yours.

The other benefit of being pre-qualified is that you’re going to know where your monthly payment fits in with your budget. Your mortgage payment isn't the only bill that is involved with your housing. When you know the bigger financial picture, you can make a more informed and smart decision.

Talk To Your Mortgage Lender

I hope this video helped you understand the differences between prequalification and preapproval—and why it matters. So if you're ready to go out on the market and start searching for a new home, talk to your mortgage lender and make sure you get prequalified. In today’s seller’s market, this is especially important if you want to stay competitive.

If you have any questions or want to get started on the process, feel free to reach out to me and I’d be happy to help. You can also subscribe to my channel for more real estate tips so you can make the best financial decisions for your future. Stay tuned to see what I feature next!