pre-qualify or pre-approve?? - Posted by John in NC

Posted by John in NC on March 06, 2004 at 12:36:21:

Hi all,

My wife and make about $140K/year and have about $90K in savings, along with excellent credit. We’re looking to purchase some nice rental properties that will generate a positive cash flow while appreciating.
I recently spoke to an investor (who was selling a property I called about), and he mentioned that we was going to have a number of properties (~30) come onto the market this week. I was interested enough to explain my situation, and he was helpful enough to provide a bit of advice. To avoid delays in obtaining money, he suggested that I get pre-approved (I believe) so that I can more quickly move on a property I see. I assume this is different than getting pre-qualified. Which is the better option? And does one tie me to a specific lendor, while the other one just proves that I am good on a loan.

What is the first step for a RE investor, before even shopping for a property?


John in NC