If you’re looking to buy a home, a pre-qualification or pre-approval can help. Here’s how.
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You’ve probably heard the terms “pre-approval” and “pre-qualification” before, but do you know the difference between them? It seems that even people in the industry get these terms mixed up, but they have very distinct differences.
A pre-qualification is when a buyer reaches out to a lender and verbally told them about their income and debts in a short application. This is a great first step, but the pre-approval takes things to another level.
A pre-approval is when the lender submits an application and verifies the debts, income, and assets of the potential buyer. We like to see our clients get pre-approved before shopping for a home. This also means that the application has been through the underwriting system.
In the end, being pre-approved is much more advantageous for you as a buyer than a pre-qualification is. If you have any questions for me or need a pre-approval yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.