What is the difference between being pre-approved and pre-qualified for a mortgage? Melanie Taliaferro from SWBC Mortgage is here to answer that today.

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Today I’m joined by Melanie Taliaferro from SWBC mortgage to answer the question, “What is the difference between being pre-approved and pre-qualified?”

People use the terms pre-approved and pre-qualified interchangeably when it comes to mortgages, but there is definitely a difference.

A pre-qualification can be as little as a verbal conversation with a borrower in which the lender asks about income and credit then tells the borrower based on their answers that they are pre-qualified for a home loan. That confirmation can be verbal or in writing, and the strength of a pre-qualification can range.

A true pre-approval means that a lender has not only gotten a written loan application, but has also pulled your credit report and evaluated your income and assets to get an overview of your whole financial picture before issuing a pre-approval letter. Having a pre-approval letter, then, will make your offer much stronger and put you in a position to beat out someone who might have only been pre-qualified.

“A PRE-APPROVAL LETTER WILL ALWAYS MAKE YOUR OFFER STRONGER.”

If you have any questions for Melanie, you can give her a call at 512-825-1196. As always, if you have any questions for me, feel free to give me a call or send me an email. I’m always happy to help!