Knoxville Mortgage | Difference Between Pre-Approval and Pre-Qualification

When you are considering a Knoxville mortgage, it is important to know the distinction between getting pre-qualified for a mortgage and getting pre-approved.

These terms, although seemingly similar, are in fact quite different and knowing the difference between the two can save you from headaches down the line.

A mortgage pre-qualification is simply an initial assessment of your credit and assets. A mortgage pre-approval involves a deeper look at your income, expenses and even your credit score.

Prior to the Great Recession, mortgage pre-approvals were not hard to get. As time has gone on and with changes in the American economy, however, it has become harder to secure a pre-approval.

The fact that they are now harder to get does give pre-approvals more weight, which comes with benefits:

  • You can confidently confirm a model of what your monthly payments would look like
  • You will have a better idea of what home price range you should be looking in
  • You will be aware of any possible credit issues you would need to take care of before purchasing your home
  • You will have greater bargaining power when making an offer on the home of your dreams

Again, it is important for potential home buyers to make the distinction between being qualified for and being approved for a mortgage. Being pre-qualified does not guarantee you a loan. Being pre-approved does greatly improve your chance of securing a mortgage when you decide to purchase a home.

Don’t search any further for your dream home without speaking to Brandon Born about getting pre-approved for your Knoxville mortgage! Call Brandon today at 865-474-1757 for more information or to schedule a mortgage consultation!

Source: https://www.realtor.com/advice/finance/pre-qualified-vs-pre-approved-what-mortgage-shoppers-need-to-know/