Pre-Qualified Vs. Pre-Approved – What’s the difference
Pre-Qualified Vs. Pre-Approved What’s the difference? You may have heard the terms Pre-qualified vs. Pre-approval used interchangeably but in truth is there is a difference between a pre-qualification letter and a pre-approval letter. Learn more about the differences before buying a home.
What is Pre-Qualified? A pre-qualification is an estimate of the loan amount a lender may be willing to loan you based on preliminary information you provide, which can help you estimate your purchase range. A pre-qualification is really just a general figure to help you get started shopping for a home. You can get pre-qualified by talking to a lender about your income, assets, debt and the amount of down payment you’re likely to make. However, this is an informal estimate that doesn’t involve any kind of commitment from either you or the lender. Find out how you can get your pre-qualification letter today by emailing james@jamesjam.com.
What is Pre-Approved: A pre-approval is slightly more formal than a pre-qualification and means that your lender has tentatively committed to an amount for your home loan. In order to get pre-approved you need to provide your lender with documentation regarding your income, assets and debts. You’ll pay a fee and your lender will conduct a credit check. With a pre-approval, you’ll receive a pre-approval form that outlines the approximate mortgage loan amount and monthly payment for which you qualify, subject to certain conditions or documentation.
A pre-approval allows you to stop for a home with more confidence and lets sellers and real estate agents know you’re serious about buying a home. Know that a pre-approval does not guarantee your approval for the loan and it does not mean that you must get your home loan from that lender. However, if you do use the same lender for your home loan, that approval process may go more quickly. Confirm you are credit-checked and have completed the first loan decisioning phase and provide reliable financing with specified loan amounts and terms today! Email james@jamesjam.com to get your pre-approval letter today.
About the author:
Information regarding Pre-Qualified Vs. Pre-Approved – What’s the difference? was constructed by James Jam, the #1 Individual Berkshire Hathaway HomeServices Real Estate Agent in San Diego County and Top Olivenhain and Encinitas Real Estate Agent. James can be reached via email at james@jamesjam.com or by phone at 858-210-0509. James Jam’s personal philosophy is “Dreams Made Real” that encompasses the perfect real estate experience. It is the gold standard that he has strived to provide throughout his career as a residential real estate agent since 1989.
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