If you are in the process of purchasing a home, your first step is to inquire about your mortgage financing options. As you’re doing this, it is very important to be able to distinguish the difference between a Pre-Qualification and a Pre-Approval. Based on your current financial situation such as income, savings, credit, etc, the bank will be able to inform you how much of a house you can afford. Obtaining the right mortgage is extremely important and that’s when an experienced Loan Officer comes in to play.
So what’s the difference between these two concepts? It’s simple; a Pre-qualification is a preliminary and informal estimate of how much money you’ll be able to borrow for the purchase. This is done by verbally supplying the bank/lender with
