Get preapproved, not just prequalified!
This is essential in a Seller’s market.
Preapproval is a lender’s commitment to lend; prequalifying is a verbal exchange in which the lender tells borrowers in advance how much money they can borrow.
Don’t confuse “prequalified” for “preapproved”. Prequalification doesn’t require the lender to verify income and could mean very little in terms of a consumer’s ability to obtain a mortgage. During the process of preapproval, the lender checks employment history, income, and bank funds, and reviews the credit report.
Preapproval helps us, your agents, know which houses to show you. Preapproval facilitates the closing transaction. The pre-approval process can detect any potential problems that might make obtaining a loan difficult, e.g. credit report errors, high debt balances, and an insufficient downpayment that could be corrected with time.