THE DIFFERENCE: “PRE-APPROVED” VS. “PRE-QUALIFIED”
Before you get serious about your house search, you’re going to want to meet with a mortgage professional, who will review your finances and tell you how much money a lender will be willing to loan you. That certification comes in two different forms: pre-qualified or pre-approved.
PRE-QUALIFICATION is an easy first step. You provide the mortgage professional with some key information about your finances, and they tell you what size loan you would most likely qualify for. However, it’s not a sure thing; it’s an estimate based on information you supply.
PRE-APPROVAL is a “conditional commitment” based on an extensive analysis of your finances and credit history. Having this commitment shows sellers that you’re a serious shopper, and allows you to react quickly once you find a house you like. In a hot housing market, pre-approval is almost a necessity.
Posted on February 6, 2018 at 11:54 pm