Are You Pre-Qualified or Pre-Approved for a Loan?

Before you start house hunting, it’s a good idea to meet with us—either in person or over the phone. Together, we’ll figure out how much you can afford, giving you confidence and a stronger position as a buyer. A key step in this process is understanding the difference between being pre-qualified and pre-approved for a loan.

What’s Pre-Qualification?

Getting pre-qualified is a quick and easy first step. We’ll review basic details about your finances—like your income, debts, and assets—along with your credit profile. Based on this information, we’ll provide a pre-qualification letter that estimates how much you might be able to borrow.

Keep in mind: A pre-qualification is not a guarantee of a loan; it’s just an initial estimate.

What’s Pre-Approval?

Pre-approval takes things further and gives you a real edge when you’re ready to make an offer on a home. It involves filling out a mortgage application and submitting documents to verify your income, employment, and finances—like W-2 forms, bank statements, and credit card records.

We’ll then review your options and send your application to underwriting. If approved, you’ll get a pre-approval letter (or Notice of Loan Approval, NOLA) showing the exact loan amount you’ve been approved for.

Why It Matters

A pre-approval gives sellers confidence that you’re a serious buyer and makes your offer stand out. However, the NOLA is still subject to factors like the home’s appraisal or changes in your financial situation (e.g., job loss or rising interest rates). If needed, we’ll adjust your loan amount accordingly.

Ready to get started? Let’s schedule a time to connect and set you up for success in your home-buying journey!