Pre-Qualification vs Pre-Approval What is the Difference??

Whether your buying a home, or selling a home. The difference between a Pre-Qualification or a Pre-Approval is vital and can make or break whether an offer is accepted.

The difference between the two is subtle, but very important when comparing the two.

Pre-Qualification - Based on the Un-Verified Information a client provides a lender including their income, credit score, and other qualifications. Some information may be verified but not everything in the process is verified, which is why most clients are pre-qualified not pre-approved.

Pre-Approval - A More Involved process in which the Income, Assets, Credit Report and all of their information is already verified and provided to the lender. This process will take longer but is a more of an assurance the loan can be completed.

A way to keep this straight is by knowing a Pre-Qualification is based on a conversation of information. But a Pre-Approval is based on confirmation of all of their information.

So, whether you are selling or buying a home, if someone is Pre-Approved vs Pre-Qualified. You can almost always lean towards the Pre-Approval as that is more of a sure bet the transaction will close.

Reach out if you want to learn more or have questions!