Pre Qualification vs. Pre Approval

Well, let’s take a look at the difference between being pre-qualified and being pre-approved. 

Pre-Qualified: 

• Provide information regarding your income, debts/liabilities, & credit score
• Not as thorough & can be done quickly
• Actual documentation is not reviewed

If you are pre-qualified, this means you have spoken with a loan officer, and provided them verbally with some basic information. After this, the loan officer will give you a pre-qualification letter that states a dollar amount he/she believes you will qualify for. 

Pre-Approved:

• Fill out a loan application
• Your loan officer has actually verified and examined your credit report and financials
• Requires a more thorough review

If you are pre-approved, this means your loan officer has actually reviewed your credit report and all of your financials to confirm your purchase price amount. 

Which one is better? You want to be pre-approved when purchasing a house to make sure you don’t get to the end of the process to find out you do not qualify and lose the house.

A good agent will always point out with an offer that their buyer is pre-approved. 

Remember it’s a process, and we’re here to help. Contact us today at 727-331-9565