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Pre-Qualification Vs. Pre-Approval

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.

 

                                                                                                                                                                                                                                                                                                                                       

 

 

 

 

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