Pre-Qualification vs. Pre-Approval: What's the Difference?
So you've decided to buy a house! One of the first steps in the process is to meet with a mortgage lender. To be a serious player in the game, you have to be pre-approved, not just pre-qualified!
What is the difference between being pre-qualified and pre-approved?
A pre-qualification is just a lender's opinion that you will be able to obtain a loan based on a discussion of your finances. It's an initial assesment that doesn't really carry any weight when putting in an offer on a house.
A pre-approval is a much more in depth process in which the lender will run your credit and verify your income. Having this in hand when you present an offer shows the seller that you are a serious buyer who can obtain a loan to buy their house.
When you find the house that is "the one", you want to be able to move quickly and be able to put in a serious offer so you don't miss out! Just being pre-qualified won't allow you to lock down that home.
Be prepared and ready to go with a pre-approval that will get you one step closer to your dream home!