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:
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.
A pre-qualification includes a preliminary review of your financial information while a pre-approval involves a thorough review of your finances for approval.
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 the next business day. Contact us to get started!
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.
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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 lifetime of your loan, and well into the future as your trusted partners.
Before you search for your dream home, get pre-approved for FREE. Once all information is submitted, we will provide your pre-approval the next business day.
Monitor and update your home loan as your mortgage needs and goals may change over time.
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