How well do you understand the difference between pre-approval and pre-qualification?
Do you know the difference between being pre-approved and pre-qualified?
It’s actually more simple than you might think.
When it comes to pre-qualification, nothing has been truly verified. All it means is that you, the buyer, have spoken with a lender about your finances.
Things like income and debt will have been discussed at this point, and the lender will issue a pre-qualification.
A pre-approval, however, is quite a bit more involved. When you are pre-qualified, credit and financial documentation has actually been pulled and looked into.
At this point, the buyer’s done a full-blown credit report and have had their income verified. With a pre-approval, everything is taken care of and there’s no guesswork. If you have any questions about the difference between these two processes or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d be glad to help.