Although pre-qualification and pre-approval are sometimes used interchangeably, it’s important to know the difference and when you’ll need them during your homebuying journey. Check out these 5 key differences between a pre-approval and pre-qualification for a home loan.
5 Key Differences:
Timing
Before you begin your house hunt, it’s beneficial to get pre-qualified. It quickly helps you (and your agent) determine your budget so you can shop for the home of your dreams with confidence. Once you have found your dream home, get pre-approved. This shows that you are serious about submitting an offer and ready to move on to the loan application process.
Reviewing Process
A pre-qualification includes a preliminary review of your financial information while a pre-approval involves a thorough review of your finances for approval.
Paperwork
There is no documentation needed for a pre-qualification; however, in order to receive a pre-approval, you would need to submit items such as employment history, credit information, bank statements, and tax returns.
Turn Around Time
At AmeriHome, we can provide you with a pre-qualification in just a couple of minutes or a pre-approval within the next business day. Contact us to get started!
Results
A pre-qualification quickly identifies what you can afford. A pre-approval is an approval for a specific loan amount and helps to ensure you stay competitive when you’re ready to make an offer.
Looking to start your journey home? The options and benefits available may surprise you!
Get Started Today With:
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Various Loan Options Find the right home loan for your unique goals and financial situation. |
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Expert Guidance Our Home Loan Experts are here to help by sharing their knowledge and setting you up for a successful process from application to close, throughout the life of your loan, and well into the future as your trusted partners. |
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Pre-Approval Before you have found your dream home, get pre-approved for FREE. Once all information is submitted, we will provide your pre-approval details within the next business day. |
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Mortgage Checkups Monitor and update your home loan as your mortgage needs and goals change over time. |
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Get Extra Savings Save $750 on all your new home purchase loans with your AmeriPurchase+ Benefits.* |
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We can help guide you through every step of the home financing process. To get started, just give us a call at 877.785.5422 or get your instant rate quote here.
Imagine The Possibilities With Your Better Home Loan!
*As a member of the AmeriHome family, borrowers are part of the AmeriPurchase+ program and qualify for a $750 lender credit for all of your home purchases done with AmeriHome, for any property you own. Credits will be applied only if your loan closes with AmeriHome. This offer can not be combined with any other offers and is not applicable for FHA Streamline, or VA IRRRL Refinance transactions. Other restrictions may apply. Terms and conditions are subject to change. The AmeriPurchase+ program is subject to termination without notice.
**Home buyers who utilize Newzip’s agent matching service will receive the cash reward in the form of credit at closing equal to 0.5% of the home sale price. In the event that the cash reward exceeds the concessions limit the customer will receive the reward in the form of a check within 30 days of their closing date. Home sellers who utilize Newzip’s agent matching service will save 1% in the form of a pre-negotiated agent listing fee. Obtaining a mortgage from AmeriHome is not required to utilize the Newzip cash rewards program. The cash rewards program is available in all 50 states for selling and 42 for buying. The following states do not allow cash rewards for home buyers: Alaska, Iowa, Kansas, Mississippi, Missouri, Oklahoma, Oregon, or Tennessee. Realeaux Inc. (dba Newzip) is a licensed real estate brokerage based in Massachusetts, License #423451.
