Hi! Are you curious to know what the difference is between Pre-Qualified and Pre-Approved?
I can tell you right now that they are NOT the same. In the video below I go into the key differences between the two and how there is a lot of confusion with these two terms.
Be sure to watch the video to the end and let me know your thoughts in the comments below. Oh! And don’t forget to subscribe to my YouTube channel to get the latest real estate news, updates, and local happenings.
Thanks so much!
Below is the transcription of the video just in case you need it!
Hi, today we are going over the difference between pre-approval and pre-qualified and it starts now.
Welcome to my channel. I’m Dianna Hornes, with Hornes Real Estate Group at Atlanta Communities. A few maintenance items before we begin. Be sure to hit the subscribe button, and that way you get updates on every video that I post, whether it be fun real-estate-related or breaking-news-important-related. Now that that’s out of the way, let’s go ahead and talk about the difference between pre-approved and pre-qualified, because there is a huge difference. Pre-approved, pre-qualified. What’s the difference? Not a lot of people know the difference and they use them interchangeably. Huge difference though when it comes … So let’s start with pre-qualified. Pre-qualified is you call on your mortgage loan officer, mortgage broker, whoever you work with, whether it be a local lender or a big bank, give them a call, and say, “Hey I make X, Y dollars and I have this debt and that debt.” They’ll crunch some numbers together and spit you out, in theory, this is what you can afford to purchase. That sounds all great and dandy, but nothing’s been verified.
What you want to do is have it verified, and that takes you over to pre-approved. So being pre-approved means that you have turned in your W2’s, you have turned in pay statements, you have turned in tax information, all of your financial bank statements, investments, anything that they’ve asked for to verify, you’ve turned it in, they’ve verified it for you, and they can say, “You know what? Based on this information that we know about this person, here’s what they’re qualified for.” It gives you all of your buying power. Now with that handy-dandy letter, you’re going to want to take that and start shopping for houses with that. That’s like your golden ticket to figure out what it is you can afford.
Save yourself the trouble. Start from the beginning, get pre-approved, work with an agent, and they can give you referrals to loan officers, mortgage brokers that are great to work with, that are easy to work with, and you can start shopping. So have fun, happy hunting. Reach out to me if you have any questions or if you want to dive further, or, if you want to start working with a mortgage broker or loan officer, I’ve got plenty of them to refer out to you that I know, like, and trust, and that will take very good care of you. So let’s get the process started and go from there. Until then, have a great day and I’ll see you at the next one.