Understanding Pre-Qualification vs. Pre-Approval

Understanding Pre-Qualification vs. Pre-Approval

There’s plenty of real estate terms used in transactions. Needless to say it can be confusing for buyers and sellers trying to navigate the process. Danielle Sette and Jessi Davidson of Team Sette Davidson at ERA Justin Realty understand. “The home loan process might feel overwhelming and difficult to understand. You’ve probably heard that you should pre-qualify or be pre-approved for a mortgage if you’re looking to buy a property. These are two key steps in the mortgage application process. Some people use these terms interchangeably, but there are differences that every homebuyer should understand,” states Sette. Danielle and Jessi break down the difference between the two.

Pre-Qualification

The first step in obtaining a home loan is to meet with a lender and get pre-qualified. Davidson says, “The pre-qualification process is based on consumer-submitted data. The lender will review with the buyer their financial situation and discuss income, job stability, debt and credit.” Pre-qualification can be done over the phone or online, and there’s usually no cost involved. Once they have performed a basic review of the qualifications and run credit, they will issue a Pre-Qualification Letter to the potential buyer, which will identify how much you can expect to borrow, the maximum sales price, any down payment requirements and basic terms of the loan, such as interest rate.

 

The Pre-Qualification letter is used to provide evidence that the buyer has been reviewed by a lender who is vouching for their ability to obtain a loan.

 

Your pre-qualified amount isn’t a sure thing, because it’s based only on the information you’ve provided. It’s just the amount for which you might be approved. A pre-qualified buyer doesn’t carry the same weight as a pre-approved buyer, who has been more thoroughly investigated.

Pre-Approval

Getting pre-approved is the next step, and it’s much more involved. You must complete an official mortgage application to be pre-approved, and you must supply the lender with all the necessary documentation, such as pay stubs, bank statements, assets, etc, to perform an extensive check on your financial background and current credit rating. The lender can pre-approve you for a mortgage up to a specified amount after reviewing your finances. You’ll also have a better idea of the interest rate you’ll be charged on the loan at this point, because this is often based in part on your credit score, and you might even be able to lock in an interest rate.

 

You’ll receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. A Pre-Approval letter is almost like shopping with cash; the only remaining piece of the puzzle is the property you are buying.

 

Danielle Sette and Jessi Davidson are REALTOR Sales Associates with ERA Justin Realty, both ready to discuss your home-buying questions and needs. To reach either of them, or any of our experienced Sales Professionals, call 201.939.7500 or stop by our office located at 118 Jackson Avenue in Rutherford.

ERA Justin Realty's 2019 Five Star Professionals

ERA Justin Realty's 2019 Five Star Professionals

A focus for buyers and sellers are the force that motivates the staff of active Realtor Agents at ERA Justin Realty. In fact, the firm tracks the continuing activity of 100 real estate firms who service the vast reaches of area communities and ERA Justin Realty has again proven itself to be an area real estate market leader. Seven outstanding Realtor Agents have been cited as 2019 Five Star Home Professionals and Rising Star designations.

Our Five Star and Rising Star real estate professionals in New Jersey deliver outstanding service and client satisfaction. The Five Star Professional research team contacted thousands of recent home buyers, as well as other consumers. Phone, mail and online respondents rated their service based upon criteria such as overall satisfaction and whether they would recommend the professional to a friend.

Ron Darby, ERA Justin Realty Broker Co-owner proudly offered, "An incredible honor to have our agents awarded. We are very proud of Lee Schilare, Jessi Davidson, Kristen Davis, Michelle Korosy, Julia Dagistanli, Fara Espandi and Danielle Sette for their efforts, service to their buyers and sellers and the communities they serve throughout Bergen, Passaic, Hudson and Essex Counties." Jessi Davidson and Danielle Sette are designated as Rising Stars.

The Five Star Professionals research team conducts market research to define and promote professional excellence in the industry we serve and assists consumers in selecting service professionals based on objective research tailored to the real estate profession.

For upcoming Spring 2019, our winners will be pleased to provide a current market price analysis of your home at no cost or obligation. The report features current homes on the market, homes that have sold and closed and details as to the current value of your home. It will also give specifics as to what a seller may do to make it more marketable. Invite them in, it will be rewarding for your sales process.

ERA Justin Top Producers Report for 2018 Smart Sellers Think Like Buyers

ERA Justin Top Producers Report for 2018 

Smart Sellers Think Like Buyers

ERA Justin Realty’s Danielle Sette and Jessi Davidson exceeded market challenges for 2017. To be successful, these sales professionals know what makes for a successful listing and sale and advise that smart sellers should think like buyers.  This advice continues into 2018.

Jennifer Darby, broker co-owner said, “There are plenty of homebuyers focused on buying while they can still lock in a low mortgage rate. So, the 2018 housing market should present good opportunities for sellers who understand how to maximize profit in this selling environment. Buyers are concerned about perceived value.  For this reason, pricing is more important than ever, as is property condition. Buyers are less forgiving of defects. So, ideally, you should review defects before you put your house on the market.”

Danielle said, “Listings are most salable when they're new on the market. To maximize your opportunities, your home not only needs to be priced right and properly prepared for sale, you also need a comprehensive marketing plan. You want to make sure that information about your listing reaches as many potential buyers as possible. Jessi and I and our  ERA Justin Realtor agents are proactive in advising potential sellers with comprehensive information when reviewing the sale of their house.   We provide you with a marketing plan with samples of our marketing materials that will be used to promote your house, as well as strong Internet exposure on our major websites and our full page continuous advertisements in The South Bergenite, an award-winning North Jersey Media Group publication.”

Jessi added,  “A listing on the Internet isn't enough though. Buyers don't look at listings that don't have photos. You can gain an edge on the competition with the many photos and a video tour of your house that we create and are on the Internet as soon as your house is opened to the market. For these reasons, we receive referrals from many sellers who had a positive experience buying their home through us and decide to list with the our Realtor agents who represented them as buyers. Our aim is to sell for the highest price possible. Don't list for less than a price you can accept. But, keep in mind that overpriced listings won't sell. The majority of houses include a bank appraisal as part of the mortgage process.  Our ERA Justin Realtor agents will be able to advise you about an effective list price for your home.  We offer our Comparative Market Analysis (CMA), a comprehensive study of your house in comparison with others that are on the market, that have sold, that have expired, as well as upcoming 2018 updates.  It’s offered at no cost or obligation simply by phoning our office.”

Danielle and Jessi concluded, "Multi-thousands of listings and sales have been generated since we opened our offices in 1950. We can be reached at either of our two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue, by office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also view 1000’s of homes at www.ERAJustin.com and www.ERAJustinRealty.com."

ERA Justin Realty Offers Online Video Property Tours and Open House Showings

 ERA Justin Realty Offers Online Video Property Tours and Open House Showings

Ron Darby, Realtor Broker representing area real estate needs for fifty years with ERA Justin Realty co-owner Jennifer Darby Metzger, both known throughout Bergen, Passaic, Hudson and Essex Counties, and known for their vast expertise in real estate sales and management.  They are revered literally by thousands of sellers and buyers they and their team have serviced. One of their Realtor agents Jessica 'Jessi' Davidson offers highlights of the firm's 2017 services.  Jessi has over 20 years of experience in customer service and sales and has worked locally for a construction company.

Jessi said, "Included is our advanced technology which enables consumers to view property listings through online video tours with photos, captions and information, making home buying attractive and direct and selling more streamlined. Considered as a technology leader and a top-100 ERA real estate firm nationwide, we feature our video tours in today's fast-paced advanced real estate market.  Video tours offer home sellers the advantages of  24-hour seven day a week opportunities, including open house viewings with home buyers private showings at their convenience." 

 She continued, “Video tours include multi-scene views of the interiors and exteriors of our listed properties. Visitors can tour properties from anywhere in the world. Expectations are high, and as millions of viewers use the internet to look for a home, it is critical to have the best tools to promote our listings online. Our tours help potential buyers view a property's features so much better than just a text description or a single photo of a house; for example, with exterior photos consumers may view the other side of the street and next door. We offer this additional service to each of our sellers on every listing that we market for sale.  When we post a video tour, it is available on our websites, www.ERAJustin.com, www.ERAJustinRealty.com, and many other sites from which we market our seller’s homes.  Hundreds of area sellers select us as their Realtor of choice each year as well as thousands since we began in business in 1950. We work to exceed their expectations.”

 Buyers and sellers interested in learning more about ERA Justin Realty’s online video tours can reach any of the ERA Justin Realtor agents and they will be pleased to provide extensive details as well as a seller's (CMA) comparative market analysis of the current market value of their home at no cost or obligation.

Darby concluded, "We are focused and have working relationships with varied MLS services, age over fifty-five communities and first time buyers and will be pleased to provide you with introductions to these communities, share listing amenities and provide private showings to locate a specific style that will suit your needs. By reaching out to us, the arduous task of locating the perfect house can be streamlined. Our philosophy includes exceeding expectations.  We don’t offer just real estate basics; we are as comprehensive as possible. In that way we know that our buyers and sellers will hold us in the highest regard as we create a successful transaction for you."

Jessica 'Jessi' Davidson, New Agent at ERA Justin Realty

 

Jessica 'Jessi' Davidson, New Agent at ERA Justin Realty

 

“Striving to obtain complete customer satisfaction is a quality I have often been praised for and one that I continually pursue. These are words I’ve lived by throughout my business life,” stated Jessica 'Jessi' Davidson of ERA Justin Realty.

 

Jessi has over 20 years of experience in customer service and sales and has worked locally for a construction company. She loves helping clients plan home renovation projects.  Let her bring her local know-how, her personal warmth and her boundless energy to the project of matching you with your next home! From her beginnings she has learned the importance of holding buyers and sellers needs and desires foremost when providing them with professional assistance.

 

Ron Darby, ERA Justin Realty Broker Co-owner stated, “Jessi has a gift for the human side of real estate. She’s the leader of a local Girl Scout troop as well as a longstanding member of the Coast Guard Auxiliary and an eager volunteer for a variety of community organizations." 

 

Jennifer Darby Metzger, ERA Justin Realty Broker Co-owner added, "She will help you find your town of interest  and a wonderful house for you and your family. Knowing our area towns, Jessi is a resident of Rutherford, moving from South Philadelphia with her husband Michael, daughter Gianna and their dog Enzo.  She will love to share her knowledge of our local school systems, library, entertainment, fine dining and community shopping with buyers interested in locating to our communities."

 

Jessi continued, “ERA Justin Realty is well known to be an outstanding and high volume model as a state-of-the-art real estate industry leader and I'm proud to be part of the firm as one of their achievers. I've received the Coast Guard Achievement Medal for Superior Performance of Duty and was featured as Coast Guard Auxiliarist of the Year 2013. In my free time my hobbies include, boating, sewing, reading and cooking.

 

I chose ERA Justin Realty because of their outstanding community presence and their genuine compassion to help people. I was welcomed with opened arms and feel at home within their family environment. I'm also impressed by their dynamic team of brokers and agents who continually strive to be the best in the industry. I'm honored to be with these leaders. To become one of the best, it's great to learn from the best.”

 

ERA Justin Realty proudly received the prestigious ERA world-wide Commitment to Excellence Award,  selected from approximately 3,000 ERA real estate firms.  All across the nation, the most sought award that can be achieved in business is the J.D. Power & Associates award.  Only outstanding business entities are honored and receive it.  ERA Real Estate was the recipient of Highest Satisfaction for First Time Home Buyers and Sellers Among Full Service Real Estate Firms. award.  For these reasons ERA Justin Realty should be your buying and selling Realtor of choice.

For more information, and to speak with Jessi about real estate needs, buyers and sellers can reach her and the other ERA Justin Realtor agents at either of their two Rutherford offices at 118 Jackson Avenue or 57 Park Avenue. By phone at (201) 939-7500, (201) 438-0588 or (201) 438-SOLD.  Additional real estate information is also available at the firms 1000's of homes websites at www.ERAJustin.com and www.ERAJustinRealty.com.