Prequalified? Get Pre-Approved Instead

Confused about what getting pre-qualified or pre-approved means? You’re not the only one. There’s a big difference between a mortgage pre-qualification, a pre-approval and an actual mortgage approval.

Getting Pre-Qualified for a Mortgage

Getting pre-qualified for a mortgage helps give you an idea of how much you might qualify to borrow. But since you have not actually applied for a loan, and the lender only has your word on your credit, income, assets and liabilities, a home loan or mortgage amount is not guaranteed. With a pre-qualification, no information has been verified. If you receive a letter from the lender, it may only state that you are likely to be approved for a mortgage.

A Better Solution

While it’s helpful to be pre-qualified for a home loan, it doesn’t always guarantee you’ll be approved for a loan. Our pre-approved mortgage is based on your real credit score, and really puts real estate agents and home sellers at ease. At the same time, you’re in control when making an offer to a seller. They’ll know you’re a serious buyer who’s ready and able to make a deal.

If you would like to learn more about the getting approved for a home loan, call us at (800) 251-9080 and talk to a Quicken Loans Home Loan Expert today.

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One Response to Prequalified? Get Pre-Approved Instead

  1. Tom May 1, 2013 at 10:17 am #

    Information provided in this article is inaccurate. There is NO difference between a “pre-qual” letter and a “pre-approval” letter. The only difference is simply a word (BTW Top Lenders will always pull a credit report for a pre-qual or pre-approval letter).

    Just ask an experienced Loan Officer or Real Estate Agent. If they try telling you otherwise, avoid using them for any service. Its mind blowing how the inexperienced Agents still read a “pre-approval” letter as a “approval” letter. An Approval letter is ONLY given after going through a full underwriting process.

    TO MAKE THINGS SIMPLE….if the letter has “pre” in it, you do not have a loan guarantee

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