As your mortgage broker, I wanted to explain the difference between a mortgage pre-qualification and pre-approval to you. Both are important steps in the home buying process, but they serve different purposes.
A mortgage pre-qualification is a quick and easy way for a lender to determine how much of a mortgage you may qualify for. It is based on a verbal conversation or a brief application, and it is not a commitment to lend. A pre-qualification can be helpful in providing an estimate of how much home you can afford, and it can also give you an idea of what interest rate you may qualify for. However, it is not a guarantee that you will be approved for a mortgage.
A mortgage pre-approval, on the other hand, is a more in-depth process. It involves a lender reviewing your credit report, income, and other financial information to determine if you are a good candidate for a mortgage. A pre-approval is a commitment from the lender to lend you a certain amount of money, subject to certain conditions. It is a more accurate estimate of how much you can afford and what interest rate you can expect.
As your mortgage broker, I recommend that we go through both the pre-qualification and pre-approval process. While pre-qualification is a quick and easy way to get an estimate of how much home you can afford, pre-approval is a more in-depth process that can give you a more accurate estimate of how much you can afford and what interest rate you can expect. A pre-approval carries more weight and can give you a competitive advantage when you're ready to make an offer on a home.
Please let me know if you have any questions or if you're ready to move forward with the pre-qualification and pre-approval process.