" /> Mortgage PreQualification Vs PreApproval Whats The Difference By Lisa Gordon Jun 20 2017

Mortgage PreQualification Vs PreApproval Whats The Difference By Lisa Gordon Jun 20 2017

Dated: February 17 2019

Views: 125



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When buying a home, cash is king, but most folks don't have hundreds of thousands of dollars lying in the bank. Of course, that's why obtaining a mortgage is such a crucial part of the process. And securing mortgage pre-qualification and pre-approval are important steps, assuring lenders that you'll be able to afford payments.


However, pre-qualification and pre-approval are vastly different.  Some mortgage professionals believe one is virtually useless.

“I tell most people they can take that pre-qualification letter and throw it in the trash,” 


What is mortgage pre-qualification?

Pre-qualification means that a lender has evaluated your creditworthiness and has decided that you probably will be eligible for a loan up to a certain amount.

A pre-qualification is merely a financial snapshot that gives you an idea of the mortgage you might qualify for.

Why is mortgage pre-approval better?

A pre-approval letter is the real deal, a statement from a lender that you qualify for a specific mortgage amount based on an underwriter’s review of all of your financial information: credit report, pay stubs, bank statement, salary, assets, and obligations.

Pre-approval should mean your loan is contingent only on the appraisal of the home you choose, providing that nothing changes in your financial picture before closing.  This makes you as close to a cash buyer as you can be and gives you a huge advantage in a competitive market.Inn fact, pre-approval letters paired with clean contracts without tons of contingencies have won bidding wars against all-cash offers. 

To read great articles like this visit me at www.gina.ithinkrealty.com


If you interested in free information or homes in the Central Florida area visit me at www.gina.ithinkrealty.com and (click on Contact Me top right corner) and you can provide you name, email and question you have.

I will be able to provide you with information and answer any questions you may have about homes.

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Manuel Quiros

My name is Manny Quiros, I’m a real estate professional in the “Disney Area”, I have lived in this area since 1999 and have called this area my home and place my wife and I to raise our three wo....

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