If you’re in the market for a new house, you’ve probably heard that you want to get pre-qualified or pre-approved. What’s the difference anyway?
There’s a big difference. Pre-qualified is more of a preliminary step. It gives you a general idea of which home you can afford. We will examine your credit, income, assets, and debts, and you’ll have a general idea of the price range you’re looking for. You may also see that you need to increase your savings or lower debts before you buy a house.
While pre-qualifying is an initial step, pre-approval is a deeper dive, and being pre-approved carries more weight with sellers. To get pre-approved, we will verify your income, assets, etc., and you will be more official (of course, you still have to apply for a mortgage). Being pre-approved is almost necessary for competitive housing markets, as realtors do not want to waste time, and you will have a better chance of accepting your bid.
Now that we know the difference, you may wonder what’s the point of getting pre-qualified – why not just get pre-approved? Good question – it’s much faster and gives you a good starting point to start your home search. Pre-qualify or pre-approved. We can help you with both – apply on our website or call us to get started.