I like to think of the mortgage process as a spectrum. Pre-qualification is on the low end of that spectrum. It’s a basic credit check. A pre-approval is the next step and is much more involved. It’s also going to be more accurate and more desirable in the eyes of a seller.
If you’re looking to buy or refinance, don’t get hung up on these names. The thing you should focus on is your budget. For a given loan amount, how much cash do you need, and what’s your monthly payment going to be? That’s what you need to know more than anything. The more info you give your lender, the more accurate your budgeting will be.
If you have any questions about getting pre-qualified, pre-approved, or anything else related to buying a home, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
