Mortgage Expert Blog

Differences between a pre-approval and a pre-qualification

April 7th, 2016 | loan, pre-approved, pre-qualified, credit score

When you’re ready to start shopping for a home loan here in Edina, Minnesota you are going to need to either become “pre-approved” or “pre-qualified”. What is the difference? A pre-qualification does not require your social security number and allows you to compare loan details without having your credit accessed. This however is very difficult to do accurately unless you can specifically state your middle credit score, gross monthly income and can list all of your other monthly obligations. A pre-approval means the lender runs your credit, reviews your income and assets and submits your loan to underwriting for an actual approval. This is the pro-active approach and cost accurate way to shop for a home loan.

I insist upon doing a full pre-approval for each of my clients. It takes a little more upfront work however it guarantees that there won’t be any last minute issues or surprises. It is in your best interest to become fully approved and ready to buy. Whether you're thinking of purchasing or refinancing, get pre-approved.

Your Edina mortgage expert – Mark Merry