Mortgage Pre-Qualification vs. Pre-Approval: What’s the Difference?

If you’re gearing up to buy a home, you might be confused by some of the mortgage terminology you encounter. Like pre-qualification or pre-approval. You have a vague idea that at some point in your journey, you’re probably going to need at least one of them. But what exactly are they? What’s the difference between them? And is one stronger than the other? Let’s lay it all out: How pre-qualifications and pre-approvals are similar Pre-qualifications and pre-approvals have a few things in common. They can both act as documentation for you to take to home sellers to show that you’re likely to be approved for a mortgage. They both estimate the size of the home loan you can expect to get. And they both help you make a more competitive offer than you could without any lender documentation. In fact, many sellers require either a pre-qualification or pre-approval letter before they’ll even consider your offer. Before jumping into the differences between pre-qualifications and pre-approvals, you should understand that neither guarantees a mortgage or an accepted offer. Think of them as important first steps to getting into the home of your dreams. Save thousands when buying a home HomeLight-...