Pre-approval vs. Pre-qualification
Pre-qualification means that a lender has examined your creditworthiness and has come to the conclusion that you will probably be eligible for a loan up to a certain amount.
Pre-approval signifies that the loan application has been filed and that it has been put through the lender's firm verification process.
Here's why pre-approved buyers are ahead in the home buying game:
If you make an offer on a home and then apply for a loan, you are at the lender’s mercy, who is aware that you do not have time to shop around.
Pre-approval is really just a lender's determination of how much money you will be eligible to borrow.
You'll know exactly what price range you can and can't afford.
A pre-approval letter from a lender gives you an edge when making an offer on a house.
Pre-approved buyers can generally close escrow more quickly.