Pre-Qualification vs Pre-Approval - Whats the Difference?
Do you know the difference between a pre-qualification and a pre-approval? A lot of first time home buyers don't know the difference and they really don't understand which one they need in order to buy a house. Both pre-qualification and pre-approval are terms that get tossed around often in the real estate and mortgage industry's and over the years the definition among consumers has gotten lost.
Many people will use the terms interchangably when in fact, a prequalification and a preapproval are very different. Watch this short video to find out the definition of both.