If you’re starting the journey to homeownership, you may hear the terms pre-qualified and pre-approved. While they sound similar, they play very different roles in the mortgage process. Wes Burns, banker at Midwest BankCentre, explains what each means and why both are important.
Key Takeaways:
Pre-Qualification
Based on a verbal conversation or application review
Gives you an idea of what you might be able to afford
Not a guarantee of financing
Pre-Approval
Involves a full review of your credit, income, and assets
Confirms what loan amount you’re qualified for
Shows sellers you’re a serious buyer and ready to make an offer
Why Both Matter
Pre-qualification helps you understand your budget
Pre-approval strengthens your position in the housing market
Next Step
Both can be obtained by speaking with a loan officer at Midwest BankCentre, giving you clarity and confidence as you shop for a home.