Pre-Qualification vs. Pre-Approval

February 28, 2009 · Print This Article

Pre-Qualification vs. Pre-Approval

Many use these terms interchangeably, but they are two different things.

Pre-Qualification: This is when a lender tells you how much house you can afford based on financial information you have provided to them. However, this information is not verified, and there is no guarantee that you will actually qualify and be approved for a loan of this amount.

Pre-Approval: This takes pre-qualification a bit farther. Your information is verified and your credit reports are run. The you have a true picture of the amount and terms of your loan. This puts you in a better position in negotiations with a seller. The seller knows that your financial information is sound.

We recommend Olan Carder and Gary Palmer with Myers Park Mortgage. They can get you pre-qualified in a matter of minutes or pre-approved in a few hours.