Mortgage Preapprovals Vs. Prequalification
As you prepare to apply for a mortgage through a mortgage lender like Point Mortgage of Miami, you have probably come across the terms “preapproval” and “prequalification” — but what do they mean and what is the difference? At the most basic level, both of these are steps lenders use to verify that a client can afford a mortgage. Read on to learn about the key differences between the two, and, if you are in Miami and are looking to get prequalified for a mortgage, contact Point Mortgage to get started!
What’s The Difference?
The main difference between getting prequalified and preapproved for your mortgage is that preapproval involves verifying your financial information and credit history, while prequalification is usually based on self-reported information.
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Why Get Prequalified?
If you will just need to get preapproved eventually anyway, why get prequalified at all? The main reason is that it helps your mortgage broker narrow down your home loan options and give you an estimate for a property you can afford. After you get prequalified, it is usually a good idea to take it one step further and verify your financial information and narrow down your options while also showing prospective sellers that you are serious.