Pre-Qualification and Preapproval: What’s the Difference?
Mixing up pre-qualification and preapproval is easy to do. But it’s important to know the difference because only one — preapproval — will put you ahead of the homebuying competition.
Getting pre-qualified for a loan is like asking for approval from your significant other’s parents before you propose. While it might be nice to get a “yes” from the parents, until you drop to one knee for the ultimate approval, you aren’t getting anywhere.
Rob Veneziano, a senior loan advisor with Fairway Independent Mortgage Corp. in Boston, describes pre-qualification as “preapproval light.”
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