Chris Pedison - Mid America Mortgage, Inc.

Mid America Mortgage, Inc.

  • About Us
  • Blog
  • Resources
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
    • What to Expect at Closing
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Pre-Qualify
  • Reviews
    • My Zillow Reviews
    • Yelp Reviews
    • Our Google Reviews
    • Testimonials
  • Contact
You are here: Home / Home Mortgage Tips / Understanding the Difference Between a Mortgage Pre-qualification and a Pre-approval

Understanding the Difference Between a Mortgage Pre-qualification and a Pre-approval

November 20, 2020 by Chris Pedison

Understanding the Difference Between a Mortgage Pre-qualification and a Pre-approvalIf you’re in the market for a new home and you’ve been researching mortgages, you’ve likely come across the terms “pre-qualification” and “pre-approval”. While these terms are self-explanatory in some circumstances, they are quite different in regards to mortgage financing.

In today’s blog post we’ll explain the difference between a mortgage pre-qualification and a pre-approval.

Pre-qualification: an Initial Look at Your Mortgage Options

The first – and easiest – step on the way to receiving mortgage financing to buy a home is known as pre-qualification. During this process you’ll meet with a mortgage advisor or lender who will assess your financial history including your current income and any debts that you might have. Using these numbers they’ll perform a quick calculation that suggests how much mortgage financing you might qualify for when you’re ready to buy a home.

Your mortgage professional will also answer any questions that you might have about the process, including what interest rates you may qualify for, how much you’ll need to invest in your down payment and more.

Pre-approval: A Conditional Mortgage Commitment

After you’ve been pre-qualified for your mortgage and you’re ready to start looking for a new home you’ll go through the pre-approval process. At this time your mortgage advisor or lender will take a much deeper look into your current financial situation, including pulling a credit report to assess how much risk they will have in lending you money. You’ll also complete a full mortgage application as this will allow your lender to get a conditional approval for a certain amount or range. Finally you’ll be informed about the interest rate and the terms of the mortgage once you find your new home and complete the purchase.

The Final Step: Finding the Perfect Home

Now that you’ve been pre-approved and have received a conditional commitment from your lender, you’re ready to find that perfect new home. On top of having a better idea of your price range and what you can afford, you’ll find that sellers are far more receptive to your offers as having a pre-approval signals that you’re a serious buyer who is ready to make your move.

When you’re ready to buy your new house or condo, your local mortgage professional is ready to help. Contact them to learn more about pre-qualification, pre-approval and your financing options. Enjoy your new home!

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgages, Mortgages and Credit

Chris Pedison

Contact Chris Pedison


Senior Loan Originator

Mobile (903) 215-3226
Toll Free 1-888-434-4349

NMLS #272747

PRE-QUALIFY NOW

CLICK HERE from your phone
to download my app!
MAM

Connect with Me

Get A Rate Quote!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

  • Let There Be Light! 3 Easy Ways to Make over a Room by Adding New Light Fixtures
  • Understanding The Role Of A Mortgage Prepayment Penalty Fee
  • 4 Steps to a Smooth Mortgage Refinance at a Rock-Bottom Rate
  • What’s Ahead For Mortgage Rates This Week – January 19, 2021
Equal Housing
Licensed by the N.J. Department of Banking and Insurance
AZ BK#0918586

Our Location


Mid America Mortgage, Inc.
14900 Landmark Blvd
Suite 600
Dallas, TX 75254

Copyright © 2021 · Powered by MySMARTblog