WHAT'S
WHAT?
P R E - Q U A L I F I C A T I O N V S . P R E - A P P R O V A L
Before beginning your house hunt, it's a good idea
to get pre-qualified or pre-approved for a mortgage.
Doing so will give you an idea how much you can
aff ord to spend so you won't waste your time
looking at houses that are out of your price range.
Keep in mind, though, that pre-qualifications and
pre-approvals are two very diff erent things:
• Getting PRE-QUALIFIED simply means that a
lender has provided you with an estimate of the
mortgage amount you will likely qualify for. If you
choose to purchase a home, you will still have
to go through the actual mortgage application
process at that time.
• Getting PRE-APPROVED requires you to provide
a lender with paperwork so they can verify your
income, credit, etc. If that lender does decide to
pre-approve you for a mortgage, it essentially
means you are guaranteed to get a loan up to a
specified amount (assuming no major financial
changes occur) for a limited period of time.
HOME
FINANCING
OPTIONS
L E A R N T H E L I N G O :
