The difference between Pre-qualification and Pre-approval

Most real estate buyers have heard that they need to pre-qualify or be pre-approved for a mortgage if they’re looking to buy a property. These are two key steps in the mortgage application process. Some people use the terms interchangeably, but there are important differences that every homebuyer should understand.

Pre-qualification
Pre-qualification is the very first step to take if you are ready to start your new home search. It is a no-cost, no-commitment analysis. You will need to provide some basic information such as income, current monthly debts, and credit score, but typically you won’t need to provide any documentation.

Your lender will be able to determine an estimate of your maximum monthly mortgage payment and how much you can borrow. These aren’t concrete numbers. They are a quick determination of what you’d likely qualify for if you made an offer and applied for a home loan.

Pre-Approval
Pre-approval is a written, conditional commitment from a bank or mortgage lender that says you are pre-approved for the mortgage financing in question. It comes only after filling out a loan application, supplying verified income, asset, and employment documentation, and pulling your credit report. Once your information has been reviewed, a loan officer will provide you with a letter stating how much you are approved to borrow.

Having a pre-approval letter can give you a competitive edge against other buyers; it shows the seller you are serious and ready to buy.

Ready to get Pre-approved? Go to LendMeMoneyFast.com

monica

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About Me

Hi I'm Monica! I'm a Real Estate professional in love with houses, especially vintage houses. I even have my Historic Homes Specialist designation. I enjoy decorating and rehabbing and helping my clients create their dream home with inexpensive updates. I also love helping sellers get top dollar for their property by taking the dated out of their home and staging in a modern simplistic way. I'm also obsessed with Mid Century furniture, so if it doesn't fit in my house, you'll find it in my Etsy Shop. I enjoy coffee and thrift store shopping to look for items to repurpose and use in house. And of course anything vintage, I’m a bit of a June Cleaver. I’m a wife and a mom of teenage twins that I homeschool. I am currently a Realtor in San Antonio, TX, and a lender in both Texas & California. But if you are from Southern California don't worry I have connections, I also help educate all over the country about the home buying process and have a team of people that i work with to help you reach your goals. We moved to SATX from SOCAL in 2018 to simplify our life. I love it here and have helped several people relocate. Read More

Monica

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