Pre-Qualification vs. Pre-Approval

With the spring season officially here, there is no better time to buy a home than right now. But before you begin the homebuying process, it is important to get your finances organized and understand what is expected of you as a new homebuyer. This includes figuring out whether you should get pre-qualified or pre-approved for a home loan. So, to help provide some insight, your local Green Cove Springs contractor with A&M Home Builders has listed the key differences between getting pre-qualified and getting pre-approved.


A pre-qualification letter is when a mortgage lender briefly reviews your financial documentation so they can give you a basic idea of what mortgages might be the best option for you. A pre-qualification does not include a credit check, which means your lender cannot exactly tell you what your debt-to-income ratio is, which is important when applying for a home loan. Basically, getting pre-qualified is the first step before getting pre-approved and it can even get done online.


Getting pre-approved for a home loan is a far more in-depth process than getting pre-qualified. With a pre-approval, your lender will thoroughly review all your financial documentation such as your current income and all your debt and assets. They will also run a credit check on your current financial situation so they can accurately tell you what your debt-to-income ratio is. Once your finances have been reviewed, you will find out what exactly your affordability is. Knowing what you can pay for a home will help make the home buying process easier and it will help you save time by avoiding homes outside of your budget.

Once you are pre-approved, you will also be able to work with a real estate agent. Most agents will not work with a buyer if they have not been pre-approved so be sure and speak with your lender first before you start looking at houses.

Contact Us

If you would like to receive more information on the difference between getting pre-qualified and pre-approved or if you are ready to purchase your dream home, then please contact your local Green Cove Springs contractors with A&M Home Builders at 904.955.1758 or email

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A and M Home Builders