Want to know a question that we get asked all the time? What is the difference between a pre-qualification and a pre-approval?
Here is the deal: Pre-qualification and pre-approval mean different things to different lenders but what YOU need to understand is that they are vastly different. Let’s talk about the difference between the two.
Pre-qualification is when you call a lender, they take your application, they don’t usually verify much, and usually just tell you to reach back out once you find a home. Once you find a home is when you go through the process of getting your income, assets, etc. documented in order to get your loan.
Let me tell you, THAT is trash!
Let me tell you what we do! A pre-approval is when you submit all of your information upfront to your lender so that they can complete the process and verify your loan before you get your offer accepted. You may be wondering why any lender would do that? It’s because we have a serpent’s heart and we want to make sure that you get your offer accepted before anyone else! If you just have a generic paper such as the pre-qualification we talked about earlier, you are most likely not going to get your offer accepted. Somebody else who came prepared and did the work is the offer that will get accepted and we want that to be your offer!
You may be thinking that you won’t have a problem getting your offer accepted because you have a great credit score or you are buying a home well within your means. Well, guess what, so is the other person making an offer on your dream home!
You need to differentiate yourself from the other offers and we can do that for you. Not only do we call the listing agent and let them know how great your offer looks but the number one thing that we do that separates us from everyone else is we give the seller a $5,000 guarantee when you submit an offer on their house. We put our money where our mouth is and my team would LOVE to earn your business.
Thanks for watching and I hope this helped in differentiating between a pre-qualification and a pre-approval. I’m Sean Zalmanoff with Better Rate Mortgage. Please feel free to reach out with any questions!