Pre-approved VS. Pre-qualified

There is a difference between getting "Pre-Approved" and getting "Pre-Qualified" for a home loan.

PRE-APPROVAL uses basic information as well as electronic credit reporting to determine whether a lender will loan you money.  In this scenario, the lender has given you a commitment to support your new purchase.

PRE-QUALIFICATION is NOT a mortgage approval, but simply an estimate of what you can afford...  At this point there is no guarantee that the lender will support your financial needs.

People who are pre-approved for a mortgage are more attractive candidates to the seller and have a better chance of getting the property when they make an offer!  Please comment if you have any questions regarding getting pre-approved for a loan.