The two terms are often confused because they are so similar. But in reality, they are very different.
- Getting prequalified for a mortgage doesn’t entail a credit check or official documentation. This process simply estimates how much you could qualify to borrow.
- Getting preapproved, on the other hand, requires official documentation; verification of your income, assets, and debts; and a credit check. A preapproval concretely specifies how much you have been approved to borrow.
Getting preapproved gives you clarity on how much you can afford, which makes it important to do before you start your home search.
Once you find a home, it also assures the seller that you’re serious and financially able to buy their home.
Contact us if you’d like…