When you are buying a house, there are two words that you will hear a lot: pre-qualified and pre-approved. But what do they mean? And which one should you go for? In this blog post, we will discuss the difference between the two and help you decide which one is best for you.
Pre-qualified means that a lender has looked at your financial information and determined that you are eligible for a mortgage. This does not mean, however, that you are guaranteed to get the loan. Pre-approval, on the other hand, is when the lender has actually approved you for a mortgage. This means that you have been approved for a certain amount of money and can now start looking for houses within that price range.
So which one should you go for? Well, it depends on your situation. If you are confident that you will be able to get approved for a mortgage, then pre-approved is the better option. However, if you are not sure whether or not you will be approved, then pre-qualified is a safer bet. Keep in mind that pre-approval is not guaranteed, so if you do get approved, there is still a chance that the lender could back out at the last minute.
In the end, it is up to you which one you choose. Just be sure to fully understand what each term means and how it will impact your buying process. And if you have any questions, don’t hesitate to ask your lender! They should be more than happy to help.