Many home buyers wonder if they should get a mortgage pre-approval or a mortgage pre-qualification before they start their home search. If you’re serious about buying a home, getting a mortgage pre-approval before you work with a Realtor and start your home search is preferred.
Mortgage Pre-Approval versus Mortgage Pre-Qualification
Realize there’s a big difference between being pre-qualified for a mortgage and being pre-approved for one. Many home buyers think these terms are interchangeable, but they are not. Here’s the difference. Pre-qualification means you have supplied a lender with some basic information, such as your income, debts, and assets. You may have given the details via phone or on an online form. Everything is based solely on what you tell the lender, as there’s no verification or credit pull. Since nothing is verified, your pre-qualification amount is likely to change, and it may be given verbally as a price range rather than an exact amount.
Pre-approval, on the other hand, means you have gone a step further. You have completed a mortgage application, paid any applicable fees, supplied documentation to prove your income, and have authorized a credit report be pulled. Because you’ve given the lender permission to review and verify your information, your pre-approval amount is often in writing and for an exact amount that isn’t likely to change.
So while pre-qualification is a good start, being pre-approved will make your home buying search more productive and often less stressful. Sellers will know you’re serious and will give higher priority to your offers. By taking the time to get a mortgage pre-approval, you’ll find yourself in your new home faster.
When you’re ready to apply for a mortgage or refinance an existing one, contact us at 707-254-8891 or [email protected]. We can also direct you to the perfect real estate agent to help you.
Have Questions, Reach out to me for more information.
Call me at (707) 254-8891
Hilda Hensley Branch Manager – Mortgage Advisor
NMLS id 280206
Benchmark Mortgage
Ark-La-Tex Financial Services, LLC NMLS id 2143
