What Is The Difference Between Prequalified and Preapproved?

What Is The Difference Between Prequalified and Preapproved?

Hey, everybody, Tom Townsend with Townsend Realty Group, Keller Williams. Hey, I’m coming to you, this is for everybody that’s getting ready to buy a house, and planning to borrow money to purchase. The question that is asked often is, When Buying A Home In Cherokee County, What Is The Difference Between Prequalified and Preapproved?. We work right here in Cherokee County, Georgia, which is Canton, Woodstock, Acworth, Ball Ground area itself.

So let me talk to you a little bit about prequalification. When you get ready to go and buy a house, one of the first things that you’re going to want to do, is first of all, if you’re taking a loan out to buy the home. You’re going to want to talk to a lender and make sure that you get qualified to actually borrow money to buy a home. No one’s going to take you seriously if you go out and make an offer on a home and you don’t have some kind of a letter from a lender saying that you are creditworthy. That’s going to be one of the first steps that you’re going to want to make.

First of all, we can get you in touch with anybody if you don’t have anybody in mind. So the first thing that the lender’s going to do is you’re going to get pre-qualified. So what is the difference between pre-qualified and pre-approved? An easy way to remember that is Q is for quick, so getting pre-qualified is a quick way to get qualified. You’re literally going to be on the phone with them, they’re going to take some general information. They’re going to ask you where do you work, how much do you make, and they’re going to want to pull your credit. So they’re going to ask you four or five different questions, and they’ll be able to tell you right away, on the phone, within a couple of minutes if you’re pre-qualified.

Once you have the pre-qualified, then the next step is they’re going to want more information from you. They’re going to want to verify all the information that you verbally told them on the phone.

So the next step is, now you got to prove that everything you told them is accurate. So now you got to send them some additional information. Once they receive that and they verify all that information that you gave them, you will be pre-approved. Now, you’ll also receive a pre-approval letter. That gives you a stronger position when you go out and actually look for homes, and you make an offer, being pre-approved puts you in a stronger position. So always make sure that once you get pre-qualified, that will let everybody know you’re good. Then the pre-approval is just a stronger position for you, which you should do almost immediately after you get pre-qualified.

That’s the difference between pre-qualified and pre-approval. That’s one of the first steps that you’re going to want to make, when you start going out and taking a look at homes to buy.

Hopefully, this was helpful. Give us a thumbs up if you felt this was a helpful video. Also, make sure that you subscribe to our YouTube channel. We’ve got lots of great information on there. And if you ever have any questions about lending, real estate, if it’s a good time to buy, a bad time to buy, anything like that, please reach out to us. I’ve been working at Cherokee County, Canton, Woodstock area since 2002, helping folks buy and sell their homes here. I hope everyone’s having a great day, and to talk to you soon.



What Is The Difference Between Prequalified and Preapproved?
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