David Blockhus
CRS, GRI, MBA

Most people who are in the market to purchase a home will not be in a position to or may not desire to pay cash for their new home. Therefore, they must go to a bank/lender to get a loan to purchase the home. Buyers discuss with a lender how much loan their income qualifies them for and what type of loan best suits their needs. Home buyers become pre-qualified when they have met with a lender and have the basic income and qualifications to get financing from the lender, but have not formally submitted a loan application. Home buyers become pre-approved from a lender when they have actually submitted a loan application to the lender and the lender has responded with a commitment to loan funds to the buyer. The current Silicon Valley real estate market encourages buyers to become pre-approved for their loan before submitting an offer to purchase.

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