What’s the Difference?
Getting pre-qualified helps you determine how much home you can afford, based on specific financial information you share with a lender. The lender does not verify this information, and consequently there is no guarantee you will qualify for the loan amount. Getting pre-approved requires that the lender verify your financial information, and does serve as a commitment to lend a specified amount based on that verified information. There is normally no cost involved in obtaining a pre-qualification however a lender may charge a fee to provide a pre-approval letter. A pre-approval does provide you significant buying power with a seller who recognizes you will be approved for a loan. Talk to your Patterson-Schwartz Sales Associate if you are in doubt about which way to go. Read the rest of the article here.
