Pre-Qualification or Pre-Approval?

These are two of the most commonly asked questions from first-time and experienced home buyers alike. Some lenders offer pre-qualifications and some offer pre-approvals. Here’s the difference:


Provides a ballpark estimate of your buying power and is based on summary information you provide on your income and assets. There is no documentation required for the pre-qualification, the lender merely trusts on what you’re stating. Once you have an offer accepted the lender will require a satisfactory review of your financial documents (income, credit, debt to income ratio, assets, etc), in order to qualify you to a loan program to ensure final approval. Pre-qualification shows weakness on the negotiation table when the seller is analyzing offers, as there is no guarantee that the buyer will be able to honor the offer made.


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, debt to income ratio and assets. Defines the type of property you are approved for, a lending program and terms of the loan. 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 when the Seller is analyzing offers, as the buyer has already been fully certified for what he is offering.

As a service to our clients we offer lender pre-approval at no cost to you. To get started, fill out the form below and someone from our team will contact you to get you started with the process.

Questions, Comments, or Concerns 
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