What’s the Difference Between Pre-Qualified and Pre-Approved for a Mortgage?

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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