Pre-Qualification vs. Pre-Approval

Once you have you reviewed your finances and decide to move forward with the home buying process, you’ll want to meet with your lender to get pre-qualified or pre-approved. You may be wondering, what’s the difference between pre-qualified or pre-approval?

PRE-QUALIFICATION PRE-APPROVAL

A pre-qualification will give you an estimate of what loan amount you’ll likely get approved for with your lender. A pre-approval is when the lender agrees to loan you a set amount of money for a mortgage after they have verified your financial information. If you are preapproved, your lender will provide you with a preapproval letter that is good for 90 days and shows sellers that you are a serious, reliable buyer when you make an offer on homes. In a competitive market, we recommend placing an offer on a home with a pre-approval vs a prequalification.