Realtors and Homebuyers: Prequalification vs a Preapproval? Which Did You Use and Why?

In my experience a Pre Approval is much stronger because it shows the lender has verified more documents, i.e. tax returns, income, debt, pulled credit, etc. A prequalification is more general and brief. The borrower still needs to go through the underwriting process, so the pre approval is not by any means an approval.

The difference is a pre-approval has gone through the lenders underwriter. Much stronger than a prequal.

We NEVER use or accept a “pre qual” in our area because it is not worth the paper it is written on

Sue Smit

Pre approval is the only way to go.

Pre Approved always

Pre Qual is the initial start in the process, basically the initial idea of your finances. Pre approval is the one you want to use for contracts. Credit and other items are checked.

It is detrimental to be prequalified by an institution that is accredited. This can be done at your local bank and there’s many other institutions that focus on consumer approval. If you message me I will recommend someone in Grayslake. That is very well known the reason why you want to be prequalified is it allows you to budget And allow you to know exactly what you can spend. They will sit down and discuss your debt to income and make sure that you have enough to pay all your bills including your mortgage and any unforeseen things that might happen. It also allows you to budget and search location at the same time  and other words you wouldn’t go out and look at an $850,000 house if you can only afford a $400,000 home in my recommendation would contact the team at better homes and gardens in McHenry in gardens  and other words you wouldn’t go out and look at an $850,000 house if you can only afford a $400,000 home in my recommendation would contact the team at Better Homes & Gardens in McHenry and Grayslake . We can make the process very simple for you and not only show you the available homes in your  price range, but we can also take you through every step of the way and explain each and every step allowing you to have the best results

I would always prefer a pre-appoval because that means the loan was formally underwritten and conditionally approved.

Hi Stephanie. I would always prefer a pre-approval over a pre-qualification. Even better is a Loan Commitment with a TBD for the property. I work with a lender locally (smile) who is able to produce a Loan Commitment in 7 business days. Love them!