Ask an Agent: Pre-Approval versus Pre-Qualification Posted on May 19, 2014 by socialmedia by Welcome to Ask an Agent. If you have any real estate questions you want answered, email us at [email protected] and we’ll feature your answer on an upcoming blog post. Question: What is the difference between mortgage pre-approval and pre-qualification? It’s important to understand the differences between these two processes. Pre-qualification is an informal way to see how much you may be able to borrow from a lender. When seeking pre-qualification, a lender may not access your credit score, but will make a broad estimate after talking about your income, long-term debt and how much money you have saved for a down payment. They do not commit to lending to you at any amount, but it is more of a ballpark figure of the amount you may have available to spend on a home. Pre-approval is an important step in the homebuying process, which we explore in step two of our Home Buying Timeline Infographic. It is a lender’s actual commitment to lend to you after analyzing and verifying your financial records, including your credit report. Pre-approval gives you an actual idea of what you can afford and shows that you are a more serious buyer than those without pre-approval. Vice President of Wisconsin Mortgage Corporation John Inzeo says, “The most important first step in acquiring home financing for your home purchase is easy — get an authentic pre-approval!” Many lenders may advertise they can pre-approve without a credit score, but these companies cannot give accurate advice without accessing your credit. Inzeo urges buyers not to be fooled by these companies — “Whether in person or online, if a lender claims to be able to pre-approve or pre-qualify you without checking your credit report, find a new lender. If a lender claims to have accessed your credit report and won’t share that information with you (including your credit score data), find a new lender. If a lender won’t take the time to discuss your specific home buying plans but wants you to fill out some sort of online form instead, find a new lender.” A quality mortgage lender and loan officer will help explain your home financing options, so contact Wisconsin Mortgage today with any questions! Tags: ask an agent, buying a home, Home, Home Buying, Mortgage, tips and advice, Wisconsin Mortgage Corporation Categories: Mortgage Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ Home Property Search Map Search About Me My Recently Sold Videos Contact Me Reset Password Enter the email address for your account and we will email you instructions on how to reset your password Email* Reset My Password × Sign In Email* Password* Sign In Reset Password New to myShorewest? 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