You’ve probably gotten letters in the mail saying that you’re already pre-qualified for a loan, but what does that really mean? How many others got that same letter? In this week’s video, Jamie Cavanaugh explains the difference between pre-qualification and pre-approval, and which one you should get if you’re serious about buying a home.
Hey everyone, it’s Jamie with Amerifund, here to give you this week’s mortgage update. Today I want to answer a question that I get asked a lot. What’s the difference between pre-approval and pre-qualification?
A pre-qualification can be issued from a single phone call and it’s often based on self-reported information with no documentation required to back it up. This can be fast and convenient, but it cuts some pretty major corners. That’s why when you go to put in an offer on a home, the seller is generally going to expect a pre-approval letter. A pre-approval requires a completed loan application, a credit check, and supporting documentation. Sure, this is a bit more work upfront, but that pre-approval is significantly more valuable.
Having a pre-approval in hand can make your offer more appealing, it shows sellers you’re a serious buyer, it gives you more negotiating power, and it helps close your loan more quickly once your offer is accepted.
At Amerifund, our goal is to make sure that our clients are in the best position possible, and that’s why we always advise them to get fully pre-approved as early in the process as possible. If you have questions about pre-approval or how it differs from pre-qualification, give us a call today.
Thanks for watching and I’ll see you next week for another mortgage update.