Real Estate News from Brad Gough

Over $100 Million in Career Sales

Pre-Qualification vs. Pre-Approval

Even if you are not a first-time home buyer, it is always a good idea to decide what you can afford before you begin viewing prospective homes. There are two ways to do this: by getting a loan pre-qualification or pre-approval from a mortgage lender.

The table below highlights the differences between both options. I encourage my buyer clients to obtain a pre-approval letter first.

A loan pre-qualification is faster to obtain and provides a ballpark estimate of the amount of loan funds that may be available to you. If you are wondering about how much loan you will qualify for, a pre-qualification is a way to begin.

A loan pre-approval may take a few days to obtain, but it enables you to provide proof to home sellers that you have a conditional loan approval. If you are ready to commit to a purchase, a pre-approval letter can help me as your agent negotiate with sellers.

In recent years, mortgage guidelines have been tightened. Documentation requirements have been expanded and followed more closely. A pre-approval gets you through the process and uncovers potential pitfalls long before you become obligated by a contract to purchase.

Your pre-approval is typically good for the shelf life of the documents used. These will include a credit report, pay stubs, bank statements, W2s, tax returns, etc. The usable life of these documents will vary, yet it is usually safe to say that your approval is good for up to three or four months. During this time, it pays to file all important financial documents so they are readily available for future updates.

I Appreciate Your Referrals

It is a common misconception that a real estate agent primarily learns of someone looking to buy or sell a home when someone simply calls an agency looking for an agent to help them. Although this can happen, it is very rare. In fact, over 80% of the referrals I receive come from past clients and past coworkers just like you. The other 15-20% of referrals comes from our national network of relocation companies and other Coldwell Banker agencies across the country.

The greatest compliment I can receive is when someone like you refers me to a friend, coworker or family member of theirs. If you, or someone you know, are looking to either buy or sell a home then I would certainly appreciate the opportunity to earn your business. Do you know of someone looking to buy or sell a home?

Contact Brad Gough

12401 Old Meridian Street
Carmel, In 46032


Mobile (317) 590-3571

Office (317) 844-1131


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