Pre-qualified is when someone completes a mortgage application with a mortgage broker or a bank representative and is told how much they can afford.
Pre-approved is when someone has written confirmation from a lender stating they are willing to lend based on what is stated in an application and the applicant’s current credit history.
So what is the difference?
- opinion based
- more outlook vs exact
- lender willing to lend
- an actual confirmation of how much will be loaned
- typically come with a 120 day rate hold
You must always get yourself pre-qualified before you begin looking at homes so you know what you can afford