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.
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.
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!