Category: Real Estate 101

Pre-Approved vs. Pre-Qualified: What’s the Difference?

When buying a home, a homebuyer may hear the terms pre-qualified and pre-approved, but they are not the same. While both indicate that a lender has reviewed your finances, pre-approval is the stronger, more reliable option—and it can make all the difference in a competitive market.

✔️ Pre-Qualified – A basic review of your financial situation based on self-reported information. It gives you an estimate of how much you might be able to borrow but doesn’t guarantee loan approval.
✔️ Pre-Approved – A detailed financial review where a lender verifies your credit score, income, and assets. You receive a pre-approval letter, showing sellers you’re a serious, financially qualified buyer.

Why Pre-Approval is the Better Choice

✅ Stronger Buying Power – Sellers view pre-approved buyers as more reliable than pre-qualified buyers.
✅ More Accurate Budgeting – Since lenders verify your financial details, you’ll know exactly how much home you can afford.
✅ Faster Closing Process – With pre-approval, much of the loan process is already completed, leading to a quicker close.
✅ Competitive Edge in Multiple Offers – In a bidding war, sellers are more likely to choose a pre-approved buyer over a pre-qualified one.

Get Ahead in Your Home Search!

If you’re serious about buying, pre-approval is the way to go. Let’s connect—I’ll guide you through the process and help you find your dream home!

Contact Amie Quirarte at The Q Group

When buying a home, you’ll likely come across the term Earnest Money Deposit (EMD)—but what exactly is it, and why is it important?

An Earnest Money Deposit is a good faith deposit made by the buyer after an offer is accepted to show commitment to purchasing the property. The deposit is typically 1-3% of the home’s purchase price and is held in an escrow account until closing. If the transaction moves forward, the EMD is applied toward the buyer’s down payment or closing costs.

However, if a buyer needs to back out of the deal, getting the EMD refunded depends on the contract terms. Understanding how to protect your deposit is essential for home buyers navigating the real estate process.

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3 Ways to Protect Your Earnest Money Deposit

Contingencies are legal protections written into the purchase contract that outline specific conditions that must be met before the sale can proceed. These contingencies can help home buyers safeguard their Earnest Money Deposit if unforeseen issues arise:

• Financing Contingency – If your mortgage loan is denied due to factors beyond your control, this contingency allows you to cancel the contract and receive a refund of your deposit.
• Appraisal Contingency – If the property appraises for less than the agreed-upon purchase price, and the seller refuses to lower the price, this contingency gives you the option to walk away and get your deposit back.
• Investigation Contingency – If a home inspection reveals significant defects and the seller won’t negotiate repairs, this allows you to withdraw from the sale and keep your deposit.

These contingencies protect real estate buyers from financial loss and should always be carefully reviewed with a real estate agent.

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When Could You Lose Your Earnest Money Deposit?

While most buyers can get their deposit refunded under valid contingencies, there are situations where a seller is entitled to keep the EMD:

• Backing out without a contingency – If a buyer withdraws for personal reasons without a contractual contingency, they risk losing their deposit.
• Missing contract deadlines – Failure to meet agreed-upon timelines for inspections, financing, or closing can result in an EMD forfeiture.
• Waiving contingencies – If a buyer waives the home inspection or financing contingency, they may be unable to recover their deposit if an issue arises later.

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Final Thoughts

An Earnest Money Deposit is a crucial part of buying a home, showing the seller that you’re serious about the purchase.  By including contingencies, following contract deadlines, and documenting everything in writing, you can safeguard your investment and navigate the home-buying process with confidence.

📩 Buying a home? We’re here to guide you through every step of the process. Contact us today for expert real estate advice!

What You Need to Know

The terms buyer’s market and seller’s market are essential in understanding the dynamics of real estate. They influence everything from pricing and competition to how quickly homes sell. Let’s break down what these markets mean and how they affect buyers and sellers.

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What Is a Buyer’s Market?

A buyer’s market occurs when there are more homes for sale than there are buyers actively looking. This creates an oversupply, giving buyers the upper hand in negotiations.

Key Characteristics of a Buyer’s Market:

• High Inventory: More homes available than interested buyers.
• Longer Days on Market (DOM): Homes take longer to sell.
• Price Reductions: Sellers may lower their asking price to attract buyers.
• Fewer Bidding Wars: Buyers often have the luxury to negotiate better terms.

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What Is a Seller’s Market?

A seller’s market occurs when there are more buyers than available homes. Limited supply increases competition, driving up prices and favoring sellers.

Key Characteristics of a Seller’s Market:

• Low Inventory: Few homes available compared to the number of buyers.
• Quick Sales: Homes sell faster, often within days.
• Multiple Offers: Buyers compete, sometimes leading to bidding wars.
• Higher Prices: Sellers can price their homes higher due to demand.

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What It Means for You

• If You’re a Buyer:
  • In a buyer’s market, take your time to find the right home and negotiate favorable terms.
  • In a seller’s market, get pre-approved, act quickly, and be prepared to offer competitively.
• If You’re a Seller:
  • In a seller’s market, capitalize on demand by pricing your home competitively to spark interest and potentially multiple offers.
  • In a buyer’s market, invest in staging and pricing your home strategically to attract offers quickly.

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Whether it’s a buyer’s or seller’s market, understanding the dynamics gives you the tools to make informed decisions. Partnering with a skilled real estate professional can help you navigate the market confidently and achieve your goals.

Contact Amie Quirarte with The Q Group