Today I want to talk about the difference between a pre-approval and a pre-qualification.
A pre-qualification happens when we speak about your application information on the phone or through email and we pull a credit report. All we can really document here is the credit report, so that doesn’t make a pre-qualification very strong in the eyes of most home sellers and their agents.
Once you do provide your financial information, like your W2 and bank information, we can issue a pre-approval because we have spoken with you about this information and then verified it. A pre-approval is much stronger in the eyes of home sellers.
Most people stop here, but we take things even further. We can fully document your file on a “TBD” basis with our “Protect Your Transaction” program. We will basically issue a fully underwritten loan that is backed with a $10,000 guarantee. To learn more about PYT, click the button on the right.
If you have any other questions for us about pre-qualifications, pre-approvals, or anything else, please feel free to give us a call or send us an email. We would love to hear from you.