13 May What’s the Difference Between Pre-Qualified and Pre-Approved for a Mortgage?
What Does Pre-Qualified Mean?
- A quick “snapshot” that helps you know how much mortgage money you might qualify for.
- May require a credit check, depending on your state.
- Does not require documentation of your financial situation.
- Provided by a lender as a ballpark estimate.
- No cost involved and no commitment on either side.
- A good way to start figuring out how much home you can afford.
- Does not work as a signal that you are ready to purchase a home.
What Does Pre-Approved Mean?
- Always requires a credit check.
- Verified financial history, including documentation.
- Should you choose to, you can get a mortgage for the amount and terms for which you are pre-approved.
- No commitment to receive a mortgage from the pre-approving company.
- A sign that you are very serious and ready to purchase a home.
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