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Caroline Choi's Blog

By Caroline Choi | Broker in 90017

The Pre-Approval vs. Pre-Qualification

Buyers are always asking me what they need to move forward when starting to look for a home. I always recommend getting pre-approved from a trusted lender, if you require financing for your purchase.

Well, what if I get pre-qualified?

A pre-qualification is not the same as a pre-approval, and the strength of your offer with a pre-approval will significantly increase vs. one with a pre-qualification. Why, you ask?

Generally speaking, a pre-qualification involves the lender running a buyer's credit, and having a conversation about income, debts, and down payment. These items are not verified at that time.

A pre-approval involves the lender verifying said assets, down payment, checking W-2s or other income statements, reviewing tax returns, and verifying employment, in addition to checking the buyer's credit.

So long story short -- which do you think is stronger....? Yup, I thought so. The seller will too. :)

Happy Buying!

Caroline Choi Real Estate
Caroline Sells The City LA
www.CarolineSellsTheCity.com

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