PRE-QUALIFICATION VS. PRE-APPROVAL

PRE-QUALIFICATION

Refers to the initial step of applying for a mortgage loan, usually done prior to beginning the home-buying process. The borrower provides financial information to a lender to assess your financial situation, roughly estimate how much you could borrow, and establish a potential price range.

PRE-APPROVAL

Allows a lender to provide you with the maximum amount that they are willing to lend, after closely reviewing your financial information. Being pre-approved gives you power to negotiate on the buying market. Sellers will be more confident that your offer can be financed and is secure.