When you're pre-approved, it means you've undergone a thorough examination where you've provided documentation and your application has been rigorously assessed. Pre-qualification, on the other hand, is a preliminary assessment of your ability to qualify, requiring further time, documentation, and examination to confirm eligibility.
Opting for a pre-approval or pre-qualification leads to distinct experiences in the home buying process.
Pre-Qualification: Provides an Estimate
Pre-Approval: Indicates Commitment
With pre-qualification, you risk losing leverage to shop and compare loans and homes. There's a possibility of wasting time looking at homes outside your price range, making your purchase offers less attractive to sellers, especially in competitive markets. Additionally, you'll need to wait for the lender's review and verification.
However, pre-approval offers advantages like the ability to shop and compare loan options with confidence in your affordability. Your qualifications are thoroughly reviewed and verified by the lender, enabling you to close quickly.
If you're seeking a mortgage lender with a readily accessible local team, I can provide the support you need to ensure the best possible experience. Let's work together to prepare you for a smooth home buying journey.
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