They sound so close, but they are two different steps in the home-buying process:
pre-qualification and pre-approval.
So what’s the difference, and how can you keep ‘em straight?
Here is a quick run-down:
This is usually done over the phone or online. Getting pre-qualified involves providing a mortgage lender information about your debt, income, and assets. The lender then gives you an estimate of how much you can borrow and provides a pre-qualification letter to attach to any offers you make.
It is so important, in today’s market here in the desert especially, to go one step further……and already be pre-qualified and pre-approved!
When you’re seriously looking for a new home, it’s time to get pre-approved. You’ll fill out an official mortgage application, provide documentation to back up your financial information, and give the lender permission to run a credit report. The lender will approve an exact loan amount with a specified interest rate, and if you’re ready, you can go ahead and lock in the rate.
Both pre-qualification and pre-approval are necessary steps.
We can help you know exactly what you need to do when, and answer any questions you have throughout this process.
Looking for an agent in the Coachella Valley or elsewhere? I’d love to help. Give me a call!