Pre-qualified or pre-approved?

Both give you an idea of what you can borrow. Only one carries weight with a seller.

A pre-qualification is an estimate

A pre-qualification is based on what you tell a lender about your income, debts and savings. It is quick, usually done without a hard credit check, and good for a first look.

A pre-approval is checked

For a pre-approval, a lender checks your credit and reviews documents such as pay stubs, W-2s and bank statements. The letter states how much you can borrow and is usually good for 60 to 90 days.

Why sellers care

Sellers want to know a buyer can close. A pre-approval letter shows that a lender has already reviewed your finances, so many agents ask for one before showing homes.

What can change it

New debt, a job change or large unexplained deposits can change your approval. Talk to us before you open a credit card, buy a car or move money between accounts.