Pre-Qualified vs. Pre-Approved

Pre-Qualified vs. Pre-Approved: Why the Difference Matters

Before you begin your home search, it’s important to understand the difference between being pre-qualified and pre-approved — and why it can matter when you’re ready to make an offer.

A pre-qualification is generally an early estimate based on financial information you provide to a lender. It can give you a starting point for what you may be able to afford, but the information may not yet be fully verified.

A pre-approval usually involves a more detailed review of your finances, including income, assets, debts, and credit. If approved, your lender can provide a pre-approval letter showing that your financing has been reviewed.

In a competitive market, a pre-approval can make your offer stronger because it shows the seller that you have already taken important steps toward securing financing.

Getting pre-approved before you begin seriously shopping can help you understand your price range, move more quickly when the right home comes along, and make decisions with greater confidence.

The Marston Team can connect you with trusted local lenders and guide you through the next steps so you’re prepared when you’re ready to make a move.