What’s the Difference between Mortgage Pre-Qualification and Pre-Approval?

Before buying a home, you’ll need to secure your financing by talking with a lender. When you talk with the lender, you’ll go through either a pre-qualification or a pre-approval process. The terms are used interchangeably. For our purposes, we’ll look at them as pre-qualification being the less thorough of the two options.

Pre-Qualification

Loan Pre-Qualification provides a ballpark estimate of your target price range, purchase costs, and monthly payments based on unverified information provided to the lender. Essentially, the lender will provide the Pre-Qualification based on what you tell them but they won’t check your credit rating. If you’re considering buying a home in the next 6-12 months, Pre-Qualification may be all that you need to get started.

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