Today we’re talking about two terms pre-approval and pre-qualification and the differences. First up, we have the pre-qualification. This is the initial step in your home buying journey. It’s a quick and easy process when you provide basic financial information to London. Based on that information, they’ll give you an estimate of how much you might be able to borrow. And it’s a useful starting point to understand your budget and potential loan options.
Now, let’s talk about the second one, the pre-approval. Now, the pre-approval is the real deal. With the pre-approval. You’ll work closely with the lender to submit all necessary financial documents for a comprehensive review. The lender will assess your credit score, income assets, and also your debt. And once you’ve been approved, you’re going to receive a written commitment stating the exact loan amount you qualify for.
So why is the pre-approval so important? Having a pre-approval letter in hand shows sellers that you’re a serious buyer.
