Skip to main content

Loading Search Form

Please Wait

What’s the Difference Between Pre-Qualified and Pre-Approved for a Mortgage?

 

 

What Does Pre-Qualified Mean?

A quick “snapshot” that helps you know how much mortgage money you might qualify for.
May require a credit check, depending on your state.
Does not require documentation of your financial situation.
Provided by a lender as a ballpark estimate.
No cost involved and no commitment on either side.
A good way to start figuring out how much home you can afford.
Does not work as a signal that you are ready to purchase a home.

What Does Pre-Approved Mean?

Always requires a credit check.
Verified financial history, including documentation.
Should you choose to, you can get a mortgage for the amount and terms for which you are pre-approved.
No commitment to receive a mortgage from the pre-approving company.
A sign that you are very serious and ready to purchase a home.

Learn More About Buying a Home

Are you interested in buying a home in 2020 or beyond? Learn more about how the home buying process works with our free ebookThe Essential Guide to Buying a HomeIt’s full of tips and advice to help you find and buy the home of your dreams.