Pre-Qualification vs. Pre-Approval

Pre-qualification vs. Pre-approval

Identify your property price range, and strengthen your bargaining power by understanding the difference between these two buyer tools.

How do I know what price range to look in, and how do I make sure my offer is accepted?

These are two of the most commonly asked questions from first-time and experienced homebuyers alike. One of the best places to start is by getting pre-approved by a lender upfront in the process. Not only does it give you peace of mind knowing your price range is already pre-approved by the lender, but strengthens your position at the negotiating table, especially in a multiple offer situation.

Some lenders offer pre-qualifications and pre-approvals. Here`s the difference:

Pre-Qualification

	Provides a ballpark estimate of your buying power.
	Is based on summary information you provide on your income and assets.
	Requires a satisfactory review of property, financial documents and program requirements to issue final approval.
	Is offered by most lenders.

Pre-Approval

	Provides proof to real estate agents and sellers you`re pre-approved for a specific loan amount.
	Is based on verification of your income, credit and assets.
	Requires a satisfactory appraisal and title review. No change in financial condition for final approval.
	Is offered by us as a service to you at no cost before you find a home.

To get pre-approved call:

Equal Housing Lender. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend.