If you’re thinking about buying a home, the first step isn’t browsing listings—it’s talking to a lender. But what’s the difference between pre-qualification and pre-approval?
Pre-Qualification: A quick, basic assessment based on self-reported income and debts. This gives you a ballpark estimate but is not verified by the lender.
Pre-Approval: A more formal process where your income, credit, and debts are verified. It results in a pre-approval letter that shows sellers you’re a serious buyer.
Why Pre-Approval Is Essential:
- Helps you determine your true budget
- Speeds up your ability to make an offer
- Gives you negotiating power
In a competitive market like Metro Atlanta or Orlando, being pre-approved can be the edge that gets your offer accepted.
