There is a difference between pre-qualification and pre-approval.
You can be pre-qualified over the phone or online in a just a few minutes.
That being said, pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It’s highly recommended that you be pre-approved before you start looking for a home.
Being pre-approved will:
- Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
- Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved
- Help you close quickly, since your loan is pre-approved.