If you’re a buyer, a pre-approval is far more standard than a pre-qualification in today’s market, and it’s what you should much rather have.
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What’s the difference between a pre-qualification and a pre-approval?
According to Terry Schenck, our preferred lender from Prosperity Home Mortgage, a pre-qualification is simply a letter a lender provides you that details your preliminary information you’ve given verbally but they haven’t verified yet. This includes bank statements, pay stubs, and W-2s. This letter isn’t very strong and is typically frowned upon by sellers. Sometimes pre-qualification letters come with a credit check, but often they don’t.
A pre-approval letter is standard in today’s market. With this letter, the lender actually pulls your credit and verifies your documentation. The lender also puts you through an automated underwriting system, which gives you a much stronger letter and allows you to go much farther in the marketplace.
"A pre-approval letter is standard in today’s market."
Sellers in today's market prefer for their buyers to have a pre-approval. If you're in the market to buy a home, getting one is a no-brainer.
Prosperity Home Mortgage can also take your pre-approval one step further with their buyer advantage program. In addition to the pre-approval, they can also submit you to their underwriting team for a full review before you even start looking at houses. There is no cost or obligation with this program, and it can strengthen your offer tremendously.
Competition is fierce among homebuyers in our current market because of low inventory, so I recommend you take advantage of this opportunity.
If you’re interested in this program or you have any other questions for Terry, you can email him at email@example.com or call him at (703) 408-3978.
(Terrence V. Schenck NMLSR ID 193123 Senior Loan Officer, Prosperity Home Mortgage 13135 Lee Jackson Mem Hwy, suite 100 Fairfax, VA 22033 Phone (703)408-3978 | Fax (703) 293-4298 firstname.lastname@example.org)
If you have any other questions or real estate needs, don’t hesitate to reach out to me and my team. We’d be happy to help you.