HELP!! What's the Difference between Pre-Approved vs. Pre-Qualified for a Loan? | MailBag | Q&A
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You ask questions, and I answer them. This week the question is, "What is the difference between pre-approved and pre-qualified?" Claire D. Stockton
Great question. There's a huge difference between the two, so I'm happy to get into this one.
👉 Pre-qualified: Your lender does a bird's eye view of your credit score, employment history, and income. He or she then uses that information to determine what sort of loan you could qualify for.
👉Pre-approved: You work with your lender, going through every stage of actually getting a loan, right up until the home appraisal. Your lender gets everything needed to get you through underwriting, making you almost as good as cash in terms of buying power. Check with your lender on this, but in some cases, once you get through pre-approval, you may be able to remove the loan contingency from the offer, making your offer much more desirable to the seller.
As always, thanks so much for your questions.
Thanks for being part of the rebellion and for being here