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The Difference Between A Mortgage Loan Pre-Qualification & A Pre-Approval

Click here to schedule a 15 minute (or longer if needed) initial phone consultation —>VIEW CHRISTINA’S CALENDAR!   

Did you know that these are different?

We see the words “pre-qualification” and “pre-approval” when it comes to credit cards and car shopping, but, did you know that these two words are also used in real-estate? Pre-qualification and pre-approval are two terms that could have a very different meaning when it comes to choosing one buyer over another.

A pre-qualification letter is generally credit check based without the request of other documents.

You may see these often when it comes to online offers or online loans. While this check verifies a buyer’s credit, this is not a deep check that goes into other finances and income. A pre-qualification letter does not give a clear picture of whether a buyer is in a good place to move forward on purchasing your home. Furthermore, a pre-qualification letter does not mean a buyer will necessarily be approved for a loan.

On the flip side, a pre-approval letter is a much stronger indication of a buyer’s ability to secure a loan.

A pre-approval letter typically requires more information and documentation than a pre-qualification letter, which in turn gives you more confidence in the buyer’s ability to secure a loan and complete a sale! Your chances of completing a successful sale increase when a buyer started the process with a pre-approval letter.

As a buyer, it is worth taking the extra step to verify your income, assets, and situation. This extra step shows your preparedness, but also gives you a sense of financial awareness as a buyer. As I say in this video, sellers are looking at the strength of the buyer right along with the strength of the actual terms in the offer.


This is important to you because you’ll need to understand what steps the buyer has taken in order to demonstrate an ability to pay and to ensure that your home is a good financial fit for them.


This is important if you are a buyer or a seller.

Pre-qualification and pre-approval are two terms to know and understand when it comes to being on either side of the fence; buying or selling. As a buyer, knowing which steps to take to make yourself stand out and to show your interest in a home is a viable step closer to getting the keys to your new home! From a seller’s stand point, differentiating between a pre-qualification letter and a pre-approval letter allows you to make an informed decision when reviewing an offer to purchase your home.


This is important to you not only because it establishes your credibility as a buyer, but it also determines what options will work best for you, what price points fall within your comfort zone with each loan type, and outlines any limits, restrictions, or other things that need to be considered during the home shopping and contract process.


Do you have questions about pre-qualification is versus pre-approval? Reach out to me! I would love to give you more information to be better prepared in your sale!

Click here to schedule a 15 minute (or longer if needed) initial phone consultation —>VIEW CHRISTINA’S CALENDAR!   

About Christina Porter Wolfrum

Hey there! I'm Christina. I'm so glad that you've stopped by today. I'd love to talk to you about your next move. Call, text, or email me to setup a time to chat. Talk soon!

Cell #: 240.587.1687
Alt office #: 410.535.6291
Email: CPWolfrum@gmail.com
Website: www.ChristinaWolfrum.com

Client Love

Betty

She goes above and beyond to sell a house. Her knowledge of selling homes is very impressive. I would highly...

Betty

Christina Porter Wolfrum
5
2016-05-03T18:05:39-04:00

Betty

She goes above and beyond to sell a house. Her knowledge of selling homes is very impressive. I would highly recommend her as a realtor.

Jennifer

Christina stuck with us through having a failed septic she made us feel confident that we would be able to...

Jennifer

Christina Porter Wolfrum
5
2016-05-03T18:07:52-04:00

Jennifer

Christina stuck with us through having a failed septic she made us feel confident that we would be able to still sell our home in a timely manner she was very diligent during the process of selling our first home.

Marcia

Christina listened to our needs and wants and helped make our dreams reality. We will definitely use her again in...

Marcia

Christina Porter Wolfrum
5
2016-05-03T18:24:44-04:00

Marcia

Christina listened to our needs and wants and helped make our dreams reality. We will definitely use her again in the future. She is extremely knowledgeable and always keeps your best interest in mind.

Shane & Anna

Christina is a wonderful agent and possesses all the necessary qualities of someone you want on your side for the...

Shane

Christina Porter Wolfrum
5
2020-01-11T19:42:38-05:00

Shane

Christina is a wonderful agent and possesses all the necessary qualities of someone you want on your side for the big day. She comes prepared to each viewing and takes the time to learn her clients needs. This all occurs while she manages a household of 4 at home and attends  to her clients every need. Some of her flagship attributes are: patience, confidence, and most importantly, her an incredible sense of humor. I can't tell you how many times my wife and I laughed while viewing a home or talking with Christina on the phone. There were times I forgot we hired her as our agent because the relationship grew quickly from strictly business to more personal interactions. One of my favorite attributes above is her confidence. As a buyer, I wanted to know that before I placed an offer on a home, it was valued correctly. Christina was honest always. If I thought a house was overpriced and she disagreed, she told me - and vice versa. No passiveness or beating around the bush - concise and frank. Thank you Christina - if we ever decide to move from this home, you know we'll call you to be our agent.
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