Lake Erie Vacationland Blog

What's the difference between being pre-qualified and pre-approved for a mortgage?

March 30th, 2016 4:13 PM by Peggy Hopp

Pre-qualification is an informal determination by a lending professional that estimates how much mortgage you can afford. This will help you guide your home search to the correct price range.

Pre-approval is a written guarantee by a lender or mortgage broker to grant you a loan up to a specified amount. It is a good idea to get pre-approved before submitting an offer; sellers will take your offer more seriously than an offer from someone who is only pre-qualified.