Brian Emerson

Senior Loan Officer

NMLS: 400942

(612)203-5478

bemerson@edgehomefinance.com

The Difference Between Pre-Approval and Pre-Qualification

Mortgage Lender Edina - Different Pre

The Difference Between Pre-Approval and Pre-Qualification

As a first-time homeowner, you may be wondering what the difference between pre-approval and pre-qualification is. Well as your local mortgage lender Edina, Brian Emerson with Edge Home Finance has explained the key differences for some clarity.

Pre-Qualification

In the mortgage industry, pre-qualification is known as the first step buyers take when beginning the mortgage application process. This is when you supply your financial documents such as your proof of income of at least two years, any assets you have, current debt, and your credit score to the lender of your choosing. The lender will then review this information and give you an estimate on what mortgages and rates you qualify for. However, not all mortgage lenders in Edina will require that you supply your financial history for you to get qualified, nor will they run a credit check on you.

Pre-Approval

The pre-approval process is more in-depth than getting pre-qualified. Here you will be required to supply all pertinent financial information and they will run a credit check on you. They will be able to tell you exactly how much you are able to borrow from them, so you will know what price range to shop in. This can save you time when you begin looking for houses and scheduling viewings because you will know which homes you should avoid that are outside your budget. Pre-approval can also give you more credibility with sellers. Going through the pre-approval process shows sellers that you are financially capable of owning a home. It also shows that you are serious about homeownership since you took the time to get pre-approved and have had all your finances reviewed by a professional. In addition, most sellers refuse to work with buyers who have not been pre-approved for an Edina mortgage, so in doing so, you are gaining more access to homes listed in the area.

Contact Us

Whether you choose to get pre-qualified or pre-approved, both can benefit you during the application process. For more information on the difference between pre-qualification and pre-approval, or if you would like to get started on the application process today, please contact Brian Emerson with Edge Home Finance Corporation at 612-203-5478.

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