The Difference Between Pre Qualification And Pre Approval

The Difference Between Pre Qualification And Pre Approval

Image title

Did you know there is a difference between getting pre-qualified and pre-approved for a mortgage? It is important to distinguish between the two when buying a house.

For pre-qualification, a buyer contacts a lender with financial information and the lender bases their decision off these numbers. This relies heavily on information given by the buyer directly. This does not involve pay stubs, W-2s, credit score report, or similar paperwork for the lender to make this decision. While the buyer may still be honest with the lender, it’s not official.

For pre-approval, documentation is required to make a decision. This is what you really want. This documentation provides the information they need. The lender has the opportunity to discuss a buyer’s work history and any debt to understand the loan. Then the lender determines whether or not a buyer can afford a certain mortgage.

“For pre-approval, documentation is required to make a decision.”

There’s an immense difference between the two processes. You will want a pre-approval letter over a pre-qualification when you are ready to buy. If you aren’t submitting paperwork, you are not pre-approved, but instead, only pre-qualified.

Elle Soles Ennis - Broker Associate - Real Estate of Winter Park

Elle Ennis Headshot
Phone: 970-531-3637
Dated: August 3rd 2019
Views: 386
About Elle: Elle is proud to be one of the few true Grand County natives you’ll meet. Daughter of the Assistan...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Winter Park Resort Opening Day - Winter Park Resort – Opening
Gratitude List - Gratitude ListOn Thanksgiving,
Sunday Brunch In Winter Park Colorado - Sunday Brunch in Winter Park,
Downsizing Your Turkey Dinner - How to Cook a Small Turkey for a

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Real Estate of Winter Park
PO Box 58
Winter Park, CO