Pre-qualification vs. pre-approval?

Dated: 07/14/2020

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They sound so close, but they are two different steps in the home-buying process: pre-qualification and pre-approval. ⁣

So what’s the difference, and how can you keep ‘em straight? A quick run-down:⁣

Pre-qualification: Done over the phone or online, getting pre-qualified involves providing a mortgage lender information about your debt, income, and assets. The lender then gives you an estimate of how much you can borrow and provides a pre-qualification letter to attach to any offers you make.⁣

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Pre-approval: When you’re seriously looking for a new home, it’s time to get pre-approved. You’ll fill out an official mortgage application, provide documentation to back up your financial information, and give the lender permission to run a credit report. The lender will approve an exact loan amount with a specified interest rate, and if you’re ready, you can go ahead and lock in the rate.⁣

Both pre-qualification and pre-approval are necessary steps. A real estate agent will help you know exactly what you need to do when, and answer any questions you have. ⁣

Looking for an agent in the Temecula Valley or elsewhere? I’d love to help. Give me a call!⁣

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Andrea Lynn Duncan

Temecula Valley Luxury Home, Estate, and Horse Property Specialist! Andrea Lynn has a professional reputation for having a strong work ethic and a natural ability to relate to others. She is committ....

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