PRE-QUALIFICATION
PRE-APPROVAL VS.
When you hear Pre-Qualification and Pre-Approval, you may think the terms are interchangeable, but they have different meanings when it comes to the home buying process.
Here’s what you need to know:
Pre-Approval
Pre-Qualification
An actual estimate of how much you can afford Has been verified by an underwriter through documentation Significantly more reliable
A best guess of what you can possible afford Can be based off of a verbal statement of income May not always be reliable
While a Pre-Qualification may get you started thinking about your options, a Pre-Approval will tell you exactly what you can afford.
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