Difference Between Pre-Approval vs. Pre-Qualified
Pre-Approved vs. Pre-Qualified
I get asked the the question on the differences between getting pre-approved and getting pre-qualified. If you have a verbal conversation, no credit pulled, no income documents reviewed or verification of assets then you are pre-qualified. To get pre-approved, you will have your credit pulled, income documents reviewed, and asset documents reviewed.
In order for you to borrower the money to buy a home, the lender must do their due diligence and solve for what I call the 3 pillars: Credit, Income, and Assets. These are the 3 qualifiers for borrowing the money to buy a home.