Are you thinking about buying a home this spring or summer? If so, one of the first steps is getting pre-qualified or pre-approved for a mortgage. However, there are significant differences between the two. Here's a quick breakdown of the differences and how one option can give you more security when buying your home. I hope this helps you understand the mortgage process better. |
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Mortgage Pre-Qualification |
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This is an approximation, not a promise. When you're pre-qualified for a mortgage, it means that a lender has reviewed your credit and that you most likely will qualify for a loan up to a certain amount. A pre-qualification helps you narrow down your price range and gives you an idea of what you can afford based on the information you provided your lender.
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You're ready to go when you're pre-approved for a loan. This means that you've been approved for a specific amount, and an underwriter has approved the amount. It's more secure than pre-qualification. If you're seriously in the market, a pre-approval letter will give sellers far more confidence in your offer than a pre-qualification letter.
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I hope this breakdown helps you when you're looking for a home. If you need help finding a lender or are ready to start your home search, I'm here to help.
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