Before you apply for a mortgage, you can get pre-qualified or pre-approved. Typically, a pre-qualification gives you an estimated loan amount based on self-reported, unverified information; whereas, a pre-approval states the actual amount a lender is willing to loan you, based on verified financial documentation you’ve submitted.
A pre-qualification typically takes about 1-2 days. The lender might do a soft credit check before providing a letter with your ballpark loan estimate. Though it’s not a guarantee you’ll get the loan, it lets home sellers know you’re taking steps to follow through on an offer.
A pre-approval is a bit more involved. You’ll fill out an application and submit documents such as pay stubs, tax returns, and bank statements, and the lender will perform a credit check. Pre-approval is also not a guarantee that your mortgage application will close but it makes an even stronger case to the seller that you’ll be able to secure financing.
When searching for a new home, especially in a competitive market, consider getting pre-qualified or pre-approved to show sellers you’re ready — and able — to become a buyer. To be ready, you’ve gotta get ready.
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This information provided is for informational purposes only and does not substitute consultation with a legal, tax or investment professional for important financial decisions. Laurel Road assumes no liability for loss or damage incurred by use of the information provided. Please visit laurelroad.com for full product details, terms and conditions.
All Laurel Road lending products are subject to credit approval.