Pre-Qualification vs. Pre-Approval
There's nothing quite like owning a home you absolutely love, but before you start to choose what homes and neighborhoods fit your lifestyle, you should have a conversation about getting pre-approved.
You've probably heard the terms pre-qualified and pre-approved, but what do they really mean? Let's break it down:
What is pre-qualification?
Simply put, a pre-qualification is based on what you tell your mortgage loan originator about your financial situation and your credit review. You'll give them information like your income and downpayment amount. Based on your information, you'll get pre-qualified to apply for a mortgage up to a certain dollar amount. Once you find the house you love, you'll still need to apply for your mortgage.
How is pre-approval different?
Pre-approval is a full underwriting package, meaning, you know before you even find your house that you're approved to buy at a certain price. All of your information will be reviewed by our underwriters and your credit is pulled.
How long does pre-approval take?
Pre-approval can take up to 2 weeks to finalize once you've finished your application. So the key is to get pre-approved now so you're ready to buy when your dream home goes on the market.
Getting Started with Your Pre-Approval
With the fast-paced real estate market, we want to make sure you have every advantage to get the home of your dreams. With our exclusive StartSmart pre-approval process, you'll know how much home you can afford and position yourself to win when sellers have multiple offers on the table.