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One of the first steps in the home buying journey is talking to a lender. But you’ll quickly hear two terms that sound alike: pre-qualification and pre-approval.
Pre-qualification
This is a quick, basic review of your finances based on the information you provide. It gives you an idea of what you might be able to borrow but isn’t a guarantee.
Pre-approval
This is a more in-depth process. A lender reviews your credit, income, and financial documents to give you a conditional loan approval. Pre-approval carries more weight with sellers because it shows you’re financially ready to buy.
Why does it matter?
If you’re house hunting, pre-approval can make your offer stand out. In competitive markets, sellers want to know a buyer has already taken that extra step.
Takeaway: Pre-qualification is a helpful first step, but pre-approval gives you real buying power.
Ready to start your search? I can connect you with trusted lenders who will guide you through pre-approval and beyond.
