Pre-Approval vs. Pre-Qualification


You’re ready to buy your home, and you’re hearing words like pre-approval and pre-qualification; What’s the big difference between pre-approved and being pre-qualified? The difference could mean your offer is accepted instead of rejected. Pre-qualification is the first step in the mortgage process. You and your lender will discuss your financial situation (assets, debts and income). From this conversation, you’ll have an idea of what you can afford. At this stage, a credit report may not be pulled, and income is not typically verified. Because of this, your pre-qualification estimate may be inaccurate. Note: