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Pre-Approval vs. Pre-Qualification: What's the Difference?
These two terms get used interchangeably, but they're meaningfully different, and using the wrong one when you're ready to buy puts you at a disadvantage.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- Pre-qualification is a quick, unverified estimate of borrowing capacity based on self-reported information
- Pre-approval involves actual verification of your income, credit, employment, and assets
- Pre-approval results in a letter that sellers take seriously; pre-qualification often doesn't carry the same weight
- When you're ready to make offers, you need pre-approval, not just pre-qualification
- The pre-approval process typically takes a few days and involves submitting documentation to the lender
- Pre-approval gives you a specific loan amount you can use as your shopping budget
Transcript will be available when the video is recorded.
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