Have you ever wondered what the difference was between pre-qualification and pre-approval? Let us help you navigate these terms as you prepare to begin the home financing process.
First up is pre-qualification, the very first step you should take in your home buying journey:
- This is a “numbers review” only – you will provide information on your financial standing, including income, debts, savings and credit history.
- No validation needed at this stage – this step does not require documentation such as W2s and bank statements.
- An estimate will be made on how large of a mortgage you can afford.
So what makes pre-qualification different from pre-approval?
- After being pre-qualified, the next step is to get pre-approved for a mortgage.
- Why get a pre-approval? Pre-approvals provide more accurate information regarding potential home loan costs.
- Also, a pre-approval consists of a fully underwritten review of your income, assets, and credit to determine what you qualify for, conditional only on property-related items.
Now that you have an idea of the differences between pre-qualification and pre-approval, you can reach out to our preferred lender, Jeremy Boillot with Barrett Financial.
We are full-time, experienced Realtors working in Queen Creek and the surrounding areas. With decades of East Valley real estate experience under our belts, we are here to answer any questions you may have. Please do not hesitate to reach out to April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
21408 S Ellsworth Rd, Queen Creek, AZ 85142