What is the difference between Pre-Qualified or Pre-Approved when buying a home?
It is a good idea for prospective homebuyers to know how much of loan they are qualified for before they begin there search for a home. Most Realtors when they are first contacted by a prospective homebuyer will ask them if they have been pre-qualified or pre-approved for loan. Too often prospective homebuyers may think these words “pre-qualified” and “pre-approved” mean one and the same thing but they don’t. Here is the difference between the two words: Pre-Qualification: A pre-qualification is a lender’s estimate of what you may qualify for. A lender may ask you for information regarding your income, assets, liabilities, loan preference and they may even obtain a credit report to assist them in their estimate. The estimate the lender provides may be conveyed orally or in writing but the important thing to remember is that it is an estimate and not a loan commitment. As a precaution, you should always ask the lender to provide you their pre-qualification statement in writing. Pre-Appr
