If you're doing research about buying a home, you will like see the terms "pre-approval" and "pre-qualification" everywhere. Although they sound similar, these are actually two different things! Here’s how you can tell distinguish them:
What Does Pre-Qualified Mean? A quick “snapshot” that helps you know how much mortgage money you might qualify for. May require a credit check, depending on your state. Does not require documentation of your financial situation. Provided by a lender as a ballpark estimate. No cost involved and no commitment on either side. A good way to start figuring out how much home you can afford. Does not work as a signal that you are ready to purchase a home. What Does Pre-Approved Mean? Always requires a credit check. Verified financial history, including documentation. Should you choose to, you can get a mortgage for the amount and terms for which you are pre-approved. No commitment to receive a mortgage from the pre-approving company. A sign that you are very serious and ready to purchase a home. Learn More About Buying a Home Are you interested in buying a home in 2020 or beyond? Let's talk 704-941-0624
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