Pre-Qualification vs Pre-Approved

Dated: August 21 2023

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Are you thinking about buying a home this spring or summer? If so, one of the first steps is getting pre-qualified or pre-approved for a mortgage. However, there are significant differences between the two. Here's a quick breakdown of the differences and how one option can give you more security when buying your home. I hope this helps you understand the mortgage process better.

Mortgage Pre-Qualification

​This is an approximation, not a promise. When you're pre-qualified for a mortgage, it means that a lender has reviewed your credit and that you most likely will qualify for a loan up to a certain amount. A pre-qualification helps you narrow down your price range and gives you an idea of what you can afford based on the information you provided your lender.

Mortgage Pre-Approval

You're ready to go when you're pre-approved for a loan. This means that you've been approved for a specific amount, and an underwriter has approved the amount. It's more secure than pre-qualification. If you're seriously in the market, a pre-approval letter will give sellers far more confidence in your offer than a pre-qualification letter.

I hope this breakdown helps you when you're looking for a home. If you need help finding a lender or are ready to start  your home search, I'm here to help.

 
 
 
 
 
 
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Zen Ziejewski

Zen Ziejewski, born and raised in Southern California, is passionate and committed to helping others own a piece of the California Dream along with creating financial wealth through real estate. As a ....

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