What's the difference between pre-qualification and pre-approval?
Pre-qualification produces a price range based on your income and savings potential and gives you an idea of what you could afford to purchase.
Pre-approval, on the other hand, is the beginning stages of a mortgage application. The lender will review your income, down payment, assets, and liabilities, as well as your credit history to determine what you can afford. A pre-approval often guarantees an interest rate for 60-120 days.
Both processes serve a purpose within our market. If you are thinking of buying within a years time, or just looking for a general idea of what you can afford based on your income then pre-qualification may be an appropriate choice for you. If you are interested in starting your search and purchasing a home within the next few months than pre-approval would be more suitable.