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 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:
Various Loan Options
Find a home loan for your unique goals and financial situation.
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 lifetime of your loan, and well into the future as your trusted partners.
Pre-Approval
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.
Mortgage Checkups
Monitor and update your home loan as your mortgage needs and goals may change over time.
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.
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