Pre Qualification or Pre Approval

by Heather Meyers

When purchasing a home🏠 what is better a pre approval or a pre qualification letter? A pre approval is what you want!

As a first time home buyer one of the first steps you want to take is getting your pre approval. Pre-approval and pre-qualification are terms often used in the context of buying a home🏠, particularly when it comes to getting a mortgage. While they are related, they serve different purposes in the homebuying process:

Pre-Qualification:💵

A Pre-qualification is an initial assessment of your financial situation based on information you provide to a lender. It gives you a rough idea of how much you might be able to borrow. You provide basic financial information, such as your income, debts, and assets. The lender then uses this information to estimate the mortgage amount you could potentially qualify for. A Pre-qualification is not a guarantee of a loan amount, and it's based on the information you provide without verification.

Pre-Approval:💰

A Pre-approval is a more in-depth process where a lender evaluates your financial situation, including verifying your income, credit report, and other relevant documents. At this point you submit detailed financial information, and the lender reviews it to determine the specific loan amount you are eligible for. This involves a credit check and more documentation. A Pre-approval is a more reliable indication of your borrowing capacity, and it shows sellers that you are a serious and qualified buyer. It is a conditional commitment from the lender. A pre-qualification is a quick and informal estimate of your borrowing capacity based on the information you provide, while pre-approval involves a more thorough evaluation by the lender, including verification of your financial information. Pre-approval is generally more valuable when making an offer on a home, as it demonstrates to sellers that you are a strong and serious buyer.

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𝟼 𝙷𝚘𝚖𝚎 𝙰𝚍𝚍𝚒𝚝𝚒𝚘𝚗 𝙸𝚍𝚎𝚊𝚜 𝚝𝚘 𝙱𝚘𝚘𝚜𝚝 𝚈𝚘𝚞𝚛 𝙷𝚘𝚖𝚎'𝚜 𝚅𝚊𝚕𝚞𝚎 𝚊𝚗𝚍 𝙶𝚎𝚝 𝚝𝚑𝚎 𝚂𝚙𝚊𝚌𝚎 𝚈𝚘𝚞 𝙳𝚎𝚜𝚎𝚛𝚟𝚎

𝟼 𝙷𝚘𝚖𝚎 𝙰𝚍𝚍𝚒𝚝𝚒𝚘𝚗 𝙸𝚍𝚎𝚊𝚜 𝚝𝚘 𝙱𝚘𝚘𝚜𝚝 𝚈𝚘𝚞𝚛 𝙷𝚘𝚖𝚎'𝚜 𝚅𝚊𝚕𝚞𝚎 𝚊𝚗𝚍 𝙶𝚎𝚝 𝚝𝚑𝚎 𝚂𝚙𝚊𝚌𝚎 𝚈𝚘𝚞 𝙳𝚎𝚜𝚎𝚛𝚟𝚎

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"Molly's job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "

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heather@heatheryourhomegirl.com

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