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Pre-Qualification vs. Pre-Approval

These are two of the most commonly asked questions from first-time and experienced home buyers alike. One of the best places to start is by getting pre-approved by a lender up front in the process. Not only does it give you a peace of mind knowing your price range is already pre-approved by the lender, but it also strengthens your position at the negotiating table, especially in a multiple offer situation. Some lenders offer pre-qualifications and pre-approvals. Here’s the difference: 

How do I know what price range to look in?

Pre-qualification

Provides a ballpark estimate of your buying power and is based on summary information you provide on your income and assets. It also requires satisfactory review of property, financial documents and program requirements to ensure final approval. Most lenders offer pre-qualification.

Pre-Approval

Provides proof to real estate agents and sellers that you’re pre-approved for a specific loan amount and is based on verification of your income, credit and assets. It requires a satisfactory appraisal and title review and no change in financial condition for final approval. As a service to you, Movement Mortgage offers pre-approval before you find a home – at no cost!