THE IMPORTANT DIFFERENCES BETWEEN
PRE-APPROVAL VS. PRE-QUALIFICATION
When buying a home, you want to position yourself as a buyer who can afford the house and has already
been approved for your mortgage. This makes you a more attractive buyer and is an advantage when
negotiating against multiple offers. The professionals at Coldwell Banker Real Estate and Coldwell Banker
Home Loans explain the difference between pre-approval and pre-qualification.
Pre-approval uses basic information as well as
electronic credit reporting to determine whether a
lender will loan you money. If you are pre-approved
for a mortgage, the lender has given you a
commitment to support your new purchase.
Pre-qualification is not a mortgage pre-approval but
simply an estimate of what you can afford. When you
pre-qualify for a mortgage, the lender also collects basic
information regarding your income, monthly debts, credit
history and assets, and then uses this information to
calculate an estimated mortgage amount. The lender has
not yet committed to supporting your financial needs
and, therefore, you have not received and actual
guarantee of funds.
WHY IT’S IMPORTANT
Buyers who are pre-approved for a mortgage are more attractive candidates
to the seller and have a better chance of getting the property when they
make an offer. Coldwell Banker Home Loans offers a pre-approval in just
minutes. Ask your Coldwell Banker sales associate about how to get a free
pre-approval right over the phone.