Preapproval vs. Prequalification - Quicken Loans Zing Blog

Buying a house is overwhelming. There’s no way to sugarcoat it. Should I get a condo and not worry about maintenance, or should I get a single-family home with a backyard? Should we look for a home in a good school district or look in a more affordable area and consider charter schools? The list of questions is long but necessary.

But before you get the ball rolling, you need to learn the difference between preapproval and prequalification. Let’s take take a look at this frequently asked question.

Preapproval vs. Prequalification

Most people are under the assumption that these two options are the same, but they’re not! In fact, one gives you a more accurate estimate of how much house you can afford.

Getting a Mortgage Preapproval

A preapproval is the most accurate option. It takes into account verbal information provided by you, in addition to looking into your credit report. This last part is key, since it allows your mortgage banker to assess your current debt-to-income ratio.

I know that with all the reports in the news about the importance of keeping your personal information secure, it may be a little scary to provide your social security number to someone you just met. However, as long as you’re working with a reputable lender, you can rest assured that your info is safe and secure. The last thing a mortgage lender wants is to jeopardize client’s info and lose clients as a result!

Getting a Mortgage Prequalification

In a prequalification, your credit report isn’t pulled, which means that there’s a risk of getting a less-accurate estimate of how much you can afford. The mortgage banker has to rely on you providing an accurate estimate of your debt and credit score.

Some people may feel more comfortable getting a prequalification rather than a preapproval since no social security number is required, but the catch is that you won’t be as confident when shopping for a home since you’ll be wondering – “Can I really afford this house?”

Whenever you’re looking for a mortgage lender, make sure you ask them if they provide prequalification or preapprovals. Some people may use these terms interchangeably, but you now know that there’s a difference!

Become an armed buyer, and make sure you’re confident that you’ll be able to afford the home you’re interested in. Home buying is stressful already, so at least get some ambiguity out of the way and get your preapproval before you start your search.

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This Post Has 26 Comments

  1. I want to sell my rental property. My tenant wants to buy it. If tenant goes to Quicken Loans, how long will the prequalification take? How long will the preapproval take?
    Thank you!

    1. Hi Rosie:

      We don’t do pre-qualifications. We do preapprovals. It depends on how they do it, but they can share their income and asset information with us, check credit and be preapproved in as little as eight minutes through Rocket Mortgage. Hope this helps!

      Kevin Graham

  2. I applied through Quicken because of the 580 min credit score for a FHA loan. I was denied and after talking with 2 people, the min score requirement is 620. Why does the company state 580 when you aren’t even considered for a loan under 620?

    1. Hi Ariel:

      The minimum credit score is 580. However, there are different requirements depending on your debt-to-income (DTI) ratio among other factors. That said, I can have someone reach out and look into your situation. If nothing else, we may be able to help offer advice.

      Kevin Graham

    2. You wont evem get it then. Ours awaitech higher than that and they wamted $2300 to close. Of course they waited u til the day nefore to close and their payment wouid have been much higher than the place I am with now. DONT USE QUICKEN LOANS.

      1. I’m sorry to hear you’ve had this experience with us, Joy. I’m going to forward this to our client relations team so we can research your situation. Thanks for reaching out!

    1. Hi Samantha:

      I can’t really comment on how much you can be preapproved for on the blog. We would need to take a look and get more information from you. However, you can get a preapproval online through Rocket Mortgage or speak with one of our Home Loan Experts by giving us a call at (888) 728-4702.

      Kevin Graham

  3. Just be aware that if you get a preapproval letter, the loan amount can still change or be revoked completely. This just happened with me with quicken loans. I was preapproved for 250k then reduced to 220k and then denied without a call from my agent. I found by an email with no explaination.

    1. Hi Michael:

      I’m sorry to hear you’ve had this experience. I’m going to get this to the right people so we can look into this and see if we can get it turned around for you.

      Kevin Graham

  4. I’m making an offer on a rental. I have two loans with Quicken. Does Quicken offer pre-approval/pre-qualification for investment properties?

    1. Yes, Kenneth. We do full preapprovals. I’m going to recommend you talk to one of our Home Loan Experts by filling out this form or calling (888) 728-4702. We look forward to working with you again.

      Kevin Graham

    1. Hi Larry:

      We can have someone reach out to you about your options. They’ll be in contact.

      Kevin Graham

  5. Hi, I’m working on my credit score and would like to know who I can contact for a pre-approval. I’d like to know where I stand prior to looking for a home.

    1. Hi Rulonda:

      You’ve come to the right place. I’m going to have someone reach out to you about this.

      Kevin Graham

  6. Hello, just wondering what the min credit score requirement was for quicken with a fha loan. Most companies I have come across are 640min.

    1. Hi Stefanie:

      Our minimum credit score for an FHA loan is 580. I’m going to have someone reach out and help you look into your options.

      Kevin Graham

        1. Hey Omar:

          You’ve come to the right place! I’m going to have someone reach out and help you get started! Look for an email.

          Kevin Graham

  7. my husband and I have a home we need to sell before purchasing a condo. May I get prequalified before our home sells.

    1. Hi Karen! I’ve passed this on to our home loan experts. They’ll reach out to you to discuss your situation.

    1. Hi Carla! You should check out one of our partners, My Perfect Home. It allows you to search for homes from the comfort of your current home! Once you’ve found one you’d like to purchase, we can help you get the mortgage process started.

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