Pre-Approval vs Pre-Qualification: Which Is Better?

Today we'll be discussing an important distinction among home buyers in Northern Virginia.

A pre-qualification and a pre-approval are two entirely different documents. A pre-qualification is a much more basic certification, and it can be obtained in a few hours. You only need a few pieces of information, none of which is really double-checked, and you can then get your pre-qualification letter once a lender has looked over your numbers.

A pre-approval letter is much more desirable, and I highly recommend it to all of my home buyers. This is more time-consuming, but it will designate you as a serious buyer if you can acquire it. You will submit tax returns, pay stubs, insurance information, and more. Once the lender has an opportunity to review these items, you will then be issued an approval letter.

Both buyers and sellers like to see letters of pre-approval, and this is especially true when the real estate market is as hot as it is in Northern Virginia.

If you would like to be put in contact with a great local lender, please don't hesitate to contact me!