Pre-Qualified Vs. Pre-Approval

When you decide to buy a house at the Lake of the Ozarks, searching for the perfect property can be a lot of fun! However, before you start looking it’s important to make sure that you know how much house you can afford. Did you know the difference between being “Pre-Qualified” and “Pre-Approved”? It’s important to understand the difference and today, our real estate team at the Lake of the Ozarks has the answer!

What it Means to be Pre-Qualified
This gives you an idea of how much you might qualify to borrow. This process usually requires that you provide information to your mortgage lender but the information has yet to be verified. You have not actually applied for the loan yet, the information has not been verified, your credit history has not been reviewed and the loan is NOT guaranteed. A pre-qualification letter merely states that you MIGHT be approved for the mortgage amount.

What it Means to be Pre-Approved
When you are "pre-approved" for a loan, your mortgage lender has received, checked and verified your income, as well as assets and liabilities information. A copy of your credit report has likely been reviewed to check your credit history and habits. When you receive a pre-approval letter, it means that you are very likely to be approved for a mortgage and also states the amount for which you may be approved. While it isn't a 100% guarantee of your loan approval, a pre-approval carries more weight than the pre-qualification letter due to the more detailed efforts to prove your loan qualifications.

Neither is a Guarantee
With that being said, regardless of which letter you received, neither are an absolute guarantee that you will get the mortgage.  There are many factors that can come into play during the process. Some lenders may provide a letter without actually verifying information. It's possible that you might be unaware of items on your credit report. Some information on your credit report may also be inaccurate.

To make the process as seamless as possible, be sure you work with a trusted mortgage lender that will take the time to explain your options thoroughly and answer any questions you may have. Good mortgage lenders take the time to verify information prior to pre-approval and they work with you to help clean up any issues or inaccuracies on your credit report which may serve as obstacles to getting final approval for the mortgage.

Contact the Fran Campbell Team!

Ready to start looking for a home at the Lake of the Ozarks? Reach out to our trusted team - Fran Campbell Team! Whether you’ve bought a home before or you are a first time home buyer, there are a lot of moving pieces in the real estate buying process and us here to help you navigate through the process. Give us a call and let’s find your dream home!

Real Estate Lake of the Ozarks: Find Your Dream Home Now! 

Contact Fran Campbell Team at RE/MAX Lake of the Ozarks for all your real estate needs.

Fran Campbell Team


Popular posts from this blog

FACT VS FICTION - Living At The Lake Of The Ozarks

7 DIY Home Improvement Projects For A Rainy Day

The Lake of the Ozarks 31st Shootout is Almost Here!