Get Pre-Qualified & Pre-Approved

Pre-Qualification vs. Pre-Approval

• Pre-qualification is a quick, initial assessment based on self-reported financial information. It gives you a rough estimate of what you might be able to borrow but is not a reliable guarantee. 
• Pre-approval is a more thorough process where the lender verifies your financial information and pulls your credit report. It results in a formal letter stating the maximum amount you are conditionally approved for. 

Defines your true budget 

• Prevents overspending: A pre-approval prevents the disappointment of falling in love with a home that's outside your financial reach by defining your realistic price range.

• Saves time: You and your real estate agent can focus your search on homes that you know are within your budget. 

• Demonstrates seriousness: A pre-approval letter shows sellers that you are a serious, qualified buyer with the financial means to purchase their home.

• Strengthens offers: In a competitive housing market, a pre-approved offer is often more attractive to a seller than one from a buyer who hasn't secured financing. This is because it reduces the risk that the deal will fall through.

• Faster closing: Since a significant amount of your financial information is already verified by the lender, the closing process can move more quickly once your offer is accepted.

• Identifies potential issues early: The pre-approval process forces you to review your financial situation, which can help you catch and resolve any potential credit or financial obstacles ahead of time. 

• Compare lenders: Getting pre-approved by multiple lenders within a short window (typically 30–45 days) allows you to compare different rates and terms without further impacting your credit score.

• Evaluate loan types: You can learn what types of mortgages (e.g., conventional, FHA) you may qualify for.