Prequalified vs. Preapproved
Many homebuyers have asked, "What the heck is the difference?" Let's quickly break it down.
Getting prequalified for a mortgage loan is a rough estimate of how much you can afford in terms of a loan. It's quick and it gives you a ballpark idea of a price range, but it does not guarantee you a loan or specific loan amount.
On the other hand, getting pre-approved takes your credit, employment, and other important information into account. A preapproval from a mortgage lender is an actual written commitment that says they will finance your loan up to a certain amount.
I've always thought the terms were a little confusing, considering how similar they are. No matter what, if you're looking for a new home, getting prequalified and preapproved is an excellent first step when it comes to looking at properties.
We would love to help with any other questions that may come up!
Happy Friday ~ the Real Advantage Partners team