What makes being pre-qualified so different from getting pre-approved?
While they might sound similar, being pre-qualified and getting pre-approved are two very different things. Let’s take some time to talk about why.
When you get pre-qualified, you’ve given some basic information to your lender. They’ll ask about how long you’ve worked at your job, how much you make, and whether it’s commission or salary. You’ll only have a very surface-level conversation. Afterward, they’ll generate a letter saying you’re pre-qualified up to a certain amount, assuming you’ll pass some underwriting conditions.
A pre-approval means that you’re fully underwritten. They prove that you’re still working, verify your income, go through your bank statements, and make all the calls they need to.
If you are pre-approved, you have a little more buying power when it comes time to make an offer. The listing agent understands that your offer is stronger because it has already been underwritten. There’s not much left that could cause it to fall through. If you have the time, you should always get pre-approved.
If you have questions about these differences or any other real estate topic, feel free to call or email us. We’d love to help.
