Understanding the Difference Between Pre-qualification and Pre-approval

Getting the pre approval for a mortgage is similar to getting the pre qualification, but it is more in-depth and is more official, which makes it more valuable if you’re serious about buying a home. Many sellers will want to see a mortgage preapproval letter as proof that you’re serious. The preapproval process will also give you more detailed information about your financial situation and creditworthiness, and by the end of the process, you’ll learn about your loan options. In order to get preapproved, you need to give a lender detailed information about you and your finances, such as proof of ID, W-2 forms, and pay stubs. The lender will also perform a credit check. Once they determine how much you can be approved for, you will receive a letter documenting this information, and that letter will be valid for 60-90 days. This letter isn’t a guarantee, but it is a very helpful tool in the home buying process.

So even if you’re only just starting to think about home ownership, getting prequalified is a great first step. If you’re getting more serious about wanting to purchase a home, getting preapproved is the way to go, so you have a solid understating of the financials and are a more attractive buyer.

If you have any questions about getting the pre qualification and pre approval, get in touch with our team – we’re happy to help. If you are ready to get started, we’ll guide you through the process!