Differences Between Pre-Qualification and Pre-Approval

Dated: March 29 2021

Views: 298

Here are a few essential home-buying terms that everyone should know.

Looking to buy a home? Click here to view all homes
Looking to sell your home? Get a free home value report here

You’ll hear many different terms that you haven’t heard before when buying a home. Even if you’re buying your fifth home, the meaning of these terms can get lost because you simply don’t use them very often. When you’re going through the process of buying a home, two terms that you’ll need to be familiar with are “pre-approval” and “pre-qualification.” 

 

A pre-approval is really what you want as a homebuyer. It means that you’ve made an application with a lender, given them permission to run your credit and access your tax documents, and they’ve run it through their system. What comes out is a pre-approval letter that shows home sellers that you can afford homes that are priced up to a certain amount. It’s one of the first things you should do after getting connected with an experienced agent. Listing agents will want to see a pre-approval as well.

 

A pre-qualification, on the other hand, is like a pre-approval without all the bells and whistles. It’s based on your word, not on actual tax and financial documents. You need a pre-approval as a homebuyer in this market, not a pre-qualification. 

 

If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Blog author image

Kim Barber

Buyers - Whether you're looking for your first home, your dream home or an investment property, I'm committed to providing you with the highest quality buyer service. When making the type of investmen....

Latest Blog Posts

Loudoun County, VA Housing Market Sees Rising Prices and Strong Activity

The housing market in Loudoun County, VA continues to show strength and growth, with the average home value reaching $763,046 as of March 31, 2024, a 5.9% year-over-year increase. The county,

Read More

Virginia First Time Home Buyer Tips: Ultimate Guide 2024

IntroductionBuying your first home is an exciting milestone, but it can also be a daunting challenge, especially in the competitive housing market of Northern Virginia. As a first time home buyer in

Read More

Living in Ashbrook - Ashburn, VA Neighborhood (2024)

Nestled in the heart of Ashburn, VA, Ashbrook is a vibrant suburban neighborhood that has been captivating residents since 2004. With its excellent schools, convenient amenities, and prime location,

Read More

Ashburn Village - 2024 Complete Guide

Photo from: washingtonpost.comIf you are wondering about what it’s like to live in Ashburn Village, you’re in the right place. I’m Kim Barber here, your trusted real estate agent

Read More