Pre Qualified vs. Pre Approved

Pre Qualified vs. Pre Approved

Have you ever wondered what the difference is between being pre-qualified for a mortgage and being pre-approved? Here’s a quick breakdown!

 Pre-qualification 

Pre-qualification is the first step in the mortgage process.

You’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score, but this doesn’t always require documentation, it can be self-reported.

The lender will then review this information to give you an estimate of what you would qualify for.

 Pre-approval 

Pre-approval comes after pre-qualification.

You will need to fill out a mortgage application with documentation of your financial history, and the lender will verify the information you provide.

The lender will also run a credit check, and if you’re pre-approved, you’ll get a pre-approval letter, which is an offer to lend you a specific amount for 90 days.

Still have questions as far as pre-approval vs. pre-qualification? Feel free to reach me and my team: 321-972-6468. Holly.Ecimovic@edgehomefinance.com.