Pre-Qualification Vs. Pre-Approval
"What's The Difference?"
These are two of the most commonly asked questions from first-time home and experienced home buyers alike. One of the best places to start is by getting pre-approved by a lender up front in the process. Not only does it give you peace of mind knowing your price range is already pre-approved by the lender, but it also strengthens your position at the negotiating table, especially in a multiple offer situation. Some lenders offer pre-qualifications and pre-approvals. Here's the difference.
Here's the difference:
- Pre-qualification: Provides a ballpark estimate of your buying power and is based on summary information you provide on your income and assets. It also requires a satisfactory review of property, financial documents, and program requirements to ensure final approval. Pre-qualification is offered by most lenders.
- Pre-approval: Provides proof to Real Estate Agents and sellers that you're pre-approved for a specific loan amount and is based on verification of your income, credit, and assets (in some cases, verification may not be needed). It requires a satisfactory appraisal and title review and no change in financial condition for final approval. Pre-approval is offered by Movement Mortgage, as a service to you before you find a home at no cost.