We recommend getting pre-approved before you start looking for a home; as a key element in the process, having your financing in place prior to the negotiation process can help ease much of the stress typical to those discussions.

There are two terms incorrectly being used interchangeably in today's marketplace: pre-qualified and pre-approved. They sound similar, but their impact on a transaction is quite different.

Pre-qualification is an estimate of your borrowing power. This estimate is based only on the information you provide and is not verified by a lender.

Pre-approval is a firm loan commitment issued by a lender, subject to a satisfactory appraisal of a property to be purchased. When you have been pre-approved, your income, assets, and credit have been reviewed to the satisfaction of the lender.

Pre-Approval provides real benefit. Here are several reasons to consider getting pre-approved early in your homebuying process:

Confidence: Knowing that you are pre-approved for home financing allows you to search for properties with confidence, having eliminated financing issues.

Credibility: Providing a pre-approval letter increases the credibility of your offer in the eyes of homeowners who often have several offers to consider.

Agility: Knowing your financing capacity allows you to respond quickly.

Focus: Getting pre-approved early in your homebuying process allows you to focus on the most important goal: finding the perfect home.

For more information about obtaining a mortgage from Coldwell Banker Residential Brokerage, contact Kevin Greeley or Mark Grassia, our onsite Mortgage Consultants, at 617.864.8566 ext. 256 or stop by our office at 171 Huron Avenue in Cambridge.