What Is the Difference Between a Pre-Qualification and a Pre-Approval?

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How can a seller know if a buyer is serious? Regardless of which side of a real estate transaction you're on, the answer is crucial.

For starters, the offer price and terms should be reasonable. Aside from that, a serious buyer will have been pre-approved for an amount that will cover the cost of the home. It's important to note that this is NOT the same thing as being pre-qualified.

Getting pre-qualified is much easier than getting pre-approved. While it does require a visit with a mortgage professional, it is much less evidence-based than getting pre-approved. A pre-qualification is based on unverified information that a buyer provides to a loan officer, whereas a pre-approval is based on concrete information. A pre-approval requires the buyer to fill out a loan application, submit income and asset information, and allow an examination of their credit history. It's serious business -- just like buying a property! If you're buying, it's imperative to be pre-approved for a loan and to provide evidence of the pre-approval when submitting an offer. This lets the seller know you're serious and ready to go! We know great lending professionals who would love to get you pre-approved so you can start searching for your dream home today. Give us a call or shoot us an email at any time and we'll put you in touch with them. We look forward to hearing from you!