Pre-qualification
vs. Pre-approval
Getting pre-qualified helps you determine how much home
you can afford, based on a specific financial information
you share with your lender. The lender does not verify
this information, and consequently there is no guarantee
you will qualify for the loan amount. Getting pre-approved
requires that the lender verify your financial information,
and does serve as a commitment to lend a specified amount
based on that verified information. This gives you significant
buying power with a seller who recognizes you will be
approved for a loan.
What's
pre-qualification?
Pre-qualification is an informal discussion between borrower
and lender. The lender estimates the amount that you can
borrow based solely on what you tell them about your income
and assets. The lender does no verification and is not
bound to make the loan when you're ready to buy. On the
other hand, loan pre-approval is based on documented and
verified information regarding your employment, your income,
your liabilities, your assets and the cash you have available
to close on a home purchase.
To get pre-qualified, CLICK HERE.
How is pre-approval better?
To a seller, a lender's pre-approval letter is considerably
stronger than a pre-qualification letter. If a seller
knows your financing is secure, your offer is stronger.
Pre-approval also gives you peace of mind as you shop
for a home, knowing that you will qualify for the proper
mortgage amount.
To get pre-approved, CLICK HERE.
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