Pre-Approval/Pre-Qualification

Most home buyers are aware that they must pre-qualify or get pre-approved for a mortgage to purchase a home. These are the two most essential phases in the mortgage application process. Although some individuals use the phrases interchangeably, there are significant differences that every homebuyer should be aware of. Pre-qualification is only the first step. It tells you how much of a loan you're likely to qualify for. The second stage is pre-approval, a conditional commitment to give you the mortgage.