Pre-qualified vs. pre-approved: know the difference before you shop
Know the difference before you shop.
Have you ever heard "get pre-qualified" and "get pre-approved" and thought they meant the same thing? They don't, and knowing the difference can save you heartbreak.
A pre-qualification is a quick guess. You tell a lender about your income and debts, and they give you a ballpark number. Nobody has checked your paperwork yet.
A pre-approval means a lender actually looked at your pay stubs, bank statements and credit, and put in writing how much they're willing to lend you. When you find a home you love, a seller will take your offer much more seriously with a pre-approval letter.
Before you start touring homes, ask a lender for a pre-approval. If you're not ready yet, that's okay. Ask them what you need to work on to get there, and write it down.
General education only, not legal, tax or lending advice. Program rules vary; ask your lender, attorney or program office about your situation.