Back to Glossary
Pre-Approval/Pre-Qualification
Updated
January 19, 2023
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.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement