keyboard_backspaceBack to articles

What’s the difference between being pre-qualified and pre-approved?

The key to lock in your Happy Home

We’re here to coach you on two financial terms you may hear often on your mortgage journey: pre-approved and pre-qualified.

While similar in concept and wording, the difference between the two can be the difference in locking in your new happy home—or not.

What you need to know about pre-qualification letters

You can use a pre-qualification letter to get an estimate from lenders on what price range and type of home you’ll likely be able to qualify for.

The quick facts:

  • It’s based only on the information you give to the lender. Since the information is not validated with documentation, it’s not a sure thing—just an estimate
  • A pre-qualification letter simply shows the amount you might expect to be approved for
  • There are typically no costs associated with pre-qualification letters
  • We can put together a zero obligation pre-qualification for you.

What you need to know about pre-approval letters

This is a more accurate estimate of how much you’ll be able to afford when you shop for a home. It also allows you to move faster through the mortgage process, so that when you do find a home, you’ve already done a lot of the legwork.

The quick facts:

  • It requires a more in-depth inquiry of your credit history and financial background
  • It shows how much a lender may approve you for, along with an estimate of what your interest rate will be
  • Lets you shop for a home at—or below—that price level
  • Gives you more confidence when making offers on homes

A Loanologist can help

Need more information? Call 855.410.1736 and of our Loanologists (Licensed Mortgage Loan Originator) will be happy to answer your questions as you start the mortgage process.


Join 25,000 home-obsessed readers on our mailing list.
August 21, 2018