Pre-Qualification vs. Preapproval Mortgage Letter.

Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963

Pre-Qualification vs. Preapproval Mortgage Letter.

Before starting your search of homes it is best to know how much you can afford to spend on a home.

Your local mortgage lender will be more than happy to run through the numbers for you.

The process of analyzing your income, debt, assets and liabilities will be applied to a formula which calculates how expensive of a home you can afford to buy.

Pre-qualification is an informal discussion between borrower and lender. The lender provides an opinion of the loan amount that you can borrow based solely on what you, the borrower, tell the lender. The lender doesn't verify anything and is not bound to make the loan when you're ready to buy.

Loan preapproval is based on documented and verified information regarding your likelihood of continued employment, your income, your liabilities, and the cash you have available to close on a home purchase.

Some lenders ask that you pay your application and credit fees when you submit your application for approval but many lenders lately have begun to recognize that home buyers don’t want to put up any cash before they have actually agreed to purchase a home. Some have lenders will defer all fees until the home buyer is ready to schedule a closing, others simply ask for a small upfront fee.


More and more sellers are favoring the preapproval letters vs the pre-qualification letters and thus might make a buyers offer more favorable in a multi-bid situation.



Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative


DMK Real Estate, Darien, CT.
Cell (203) 228-0646




DMK Realty, 06820 





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Rick Cignoli
Norcom Mortgage NMLS# 71655 Equal Housing Lender - Avon, CT
Sr. Mortgage Loan Officer

Couldn't have said it better myself Dave. Pre-Approval in this type of market is essential for the serious home buyer.

Apr 15, 2014 02:36 AM #1
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Pre-qual letters aren't worth the paper they are printed on David.

Apr 15, 2014 08:28 PM #2
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning David. Unfortunately most pre-qualification letters aren't very good and the sad truth many preapproval letter are either.

Make it a great weekend and thank you for commenting on my post.

Apr 25, 2014 11:16 PM #3
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Everyone is pre-approved that breathes, walks, talks... unless... (sound of long roll, scroll of paper unraveling) this, this and oh yeah this checks out in the gotta a job, healthy debt limits, credit score and on and on. Then moving on to the how does the property listings you want fit the program or not. More lists and checks or red "X"'s. Great blog post points.

Apr 26, 2014 10:47 PM #4
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David Popoff

Realtor®,SRS, Green ~ Fairfield County, Ct
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