Pre-Qualified VS Pre-Approved

Pre-Qualified vs. Pre-Approved

They may sound alike, but when it comes to getting a mortgage, their differences can have a major effect on whether you’re moving in or missing out on the home of your dreams.


 

Pre-Qualified

  • An estimate of your borrowing power from a lender, often determined over the phone.
  • A determination of whether you would likely qualify for credit under a lender’s programs and standards.
  • An examination of your income and debt levels that you provide to a lender and may (but not always) include a credit check.

Pre-Approved

  • A written commitment issued by a lender after a comprehensive analysis of your creditworthiness including, verification of income.
  • A formal decision about your credit; indicates a mortgage commitment letter is available.
  • Approval conditional upon identification of a suitable property and confirmation of no material change to your financial condition or creditworthiness prior to closing.

 


 

Contact Us

Have questions about getting pre-qualified or pre-approved? We can recommend experience lenders to help you.

Please provide a valid email address.

Sign up for email updates