Pre-Approval FAQ

tahosemann
Dec 16, 2020
2 min read

I have had so many questions recently about the pre-approval process so hopefully I can address some of the questions you may have below!

Question: What is the difference between getting pre-qualified and pre-approved?

Answer: So a lot of people use the two terms interchangeably, but they are really 2 different things! Getting pre-qualified is a quick estimate, based off a conversation with a reputable lender, of how much you can afford. Getting pre-approved, is a more serious dig into your income, debts, and credit, giving you exactly how much you can afford and what your monthly payments will look like! You will get an official letter stating all of this once you are pre-approved.

Question: How long does a pre-approval letter last?

Answer: Usually between 30-90 days, depending on the lender! So do this when you know you're ready to get serious about buying.

Question: When should I speak to a lender about getting pre-approved?

Answer: As soon as you decide you want to purchase a home. Choosing a lender and then speaking to them about your options are important before you even begin looking for a home. You need to know what price point you can afford, what kind of loans are best for you, and if you can do anything to help you afford a little more!

Question: Is it free to speak to a lender and get pre-qualified and then pre-approved?

Answer: YES! The pre-approval process is completely free!

Question: Can I put an offer on a home without a pre-approval letter?

Answer: I would not recommend it. Without a pre-approval letter, you really don't even know exactly how much you can afford. Also, you do not want to spend your time trying to get pre-approved after you have already found a home you love. It also gives you credibility as a homebuyer, and shows sellers that you have your finances in check, you are serious about buying their home, and you won't be denied a mortgage if they decide to sell you their home.

Question: If I am pre-approved by one lender, does that mean I have to use that lender to actually purchase my home?

Answer: No, a pre-approval letter does not bind you to that lender. But, if you decide you want to use another lender after getting pre-approved by one, you will have to resend and redo all of the initial paperwork that you already completed with that first lender. So my advice is to shop around, speak to many lenders and try to get a feel for one that you click with and is right for your situation.

Question: Does getting pre-approved hurt my credit score?

Answer: It may drop it a few points, but it does not significantly hurt your credit score.

If you are thinking about purchasing a home, and you have any questions about the pre-approval process, how to find lenders, or anything at all, please feel free to reach out to me! I would love to help you.