Key takeaways A pre-qualification is an estimate of how much you might be able to borrow for a home, based on basic financial information you provide. A pre-approval is a conditional offer from a lender stating how much they’re likely to lend you for a home, pending final underwriting. A pre-qualification can help you understand your budget early on, while a pre-approval strengthens your offer once you’re ready to buy. If you’re considering buying a home , you’ve likely heard that getting pre-qualified or pre-approved is an important early step in the mortgage process. While these terms are often used interchangeably, there are distinct differences between the two that every homebuyer should understand. In this Redfin article, we’ll outline the differences between pre-qualification vs. pre-approval and which option is right for you. Whether you’re touring homes in Norfolk, VA , or looking at houses in Dallas, TX , here’s what you need to know about being pre-approved vs. ...
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