The words “pre-qualified” and “pre-approved” are often bandied about and even sometimes used in the same context. Texas Realtor Magazine provides a couple of good definitions for us to review.
Pre-qualifed means that a lender has done an initial review of how much money you might be eligible to borrow. You might provide the lender with some basic information on how much money you make, the debt (credit cards, car payments, mortgages) you have and a little about your credit history. From this information, a lender might give you a “pre-qualification” letter so you can put an offer in on a house.
Pre-approval means that your financial situation has been verified by your lender. You likely have filled out a mortgage application and the lender has done its due diligence to confirm you financial status.
Please Note: Neither Pre-qualification or Pre-approval guarantees an approval of a mortgage.
Therefore, when you are looking to buy a home, either of these options will help you place an offer on the home you choose. Also, when selling your home, it is important to have a buyer that is “pre-approved” rather than one that is “pre-qualified’.
If you have any questions, please give me a call at 214-769-2947. I have helped many clients work through this process and I have some excellent lenders that I can recommend for further consultation.
Beth Brake: Realtor-Team Lead
