Understanding the Difference Between Prequalification and Preapproval

Understanding the Difference Between Prequalification and Preapproval

Are you in the market for a new home, second home, or investment property? One of the first steps you'll encounter is either loan prequalification or preapproval. While these terms may sound similar, they serve different purposes in the home-buying journey.

Prequalification is a quick and informal process where a lender assesses your financial situation based on the information you provide. It can typically be done online or over the phone and gives you a rough idea of how much you may be able to borrow. It's a great way to get a general sense of your home-buying budget without a deep dive into your finances.

On the other hand, preapproval is a more in-depth process where a lender verifies your financial information and credit score. This involves submitting documentation such as pay stubs, w2s, bank statements, and tax returns. Once approved, a preapproval letter may be issued, giving you a strong advantage when making an offer on a home.

While prequalification can give you a ballpark figure, preapproval is a must before submitting an offer. It shows you're a serious buyer who has already taken the necessary steps to secure financing. This can give you a competitive edge in a hot housing market.

I'm available to provide no-obligation prequalification consultations, take loan applications, and issue preapproval letters daily from 8 AM until 8 PM, including Saturdays AND Sundays.

I can take your loan application by phone, or you may apply online: https://jayfertman.zipforhome.com/ 

My Preapproval letters are customized to include the property address and your offer price and are dated the same day as your offer. I'm available on Saturdays and Sundays, as a large percentage of my customers make offers on weekends.

Feel free to email or call me with any questions!