Preapproved vs. Prequalified. Is one more important than the other?

Do you know the difference between being preapproved and prequalified when buying a home? And is one more important than the other in today’s market? If not, you must read on….

First of all, what does Prequalified mean?

Getting prequalified for a mortgage loan requires that you select a mortgage lender (Don’t know who to call? I have a few that I worked with for years and come highly recommended) to work with and obtain your loan. A Mortgage Pre-qualification is a promise from the lender that you’re qualified to borrow up to a certain amount of money at a specific interest rate, subject to a property appraisal and other documentation.

So what does Pre-approved mean?

Being preapproved means that you have gone through the pre-approval process with a lender. It includes filling out an application, providing financial documentation, and a credit check. A mortgage pre-approval letter is a document from a lender that states you are preapproved for a loan for up to a specific dollar amount. Read more

So to answer the question, Is one more important than the other?

Being preapproved can make the difference when you are ready to make that offer in today’s market. And unfortunately, we are starting to see a pattern of deals falling through due to financing. At what seems like the eleventh hour, several buyers are learning that the amount they were prequalified for was overestimated, and they can no longer afford the house they fell in love with and have to walk away. Being preapproved can help alleviate this type of stress.

There are a lot of moving parts to the home buying journey. If you need some help talking through this financial piece, call me at 317-625-0655. I am here!

For more Helpful Resources on Financing, Click here

What’s In Store For You In 2022?

Whether you enjoy making New Year’s resolutions or scoff at the idea, there’s something inherently motivating about seeing a fresh new page on the calendar. However, if you don’t want to join the masses who hit the gym or vow to go on a digital diet, you may want to resolve to set a goal of buying a new home in 2022.

Below are some tips on how you can get started…..

Working with the right real estate agent who has experience can make all the difference. So give me a call at (317) 625-0655 to get started.

Help Establish Concrete Numbers

In a “Seller’s Market,” Real Estate Agents are more valuable than ever when it comes to helping Buyers make the best choice and find the right deal on their dream home.   

Your Agent should help prepare you by Establishing a clear and defined budget ahead of time. That means making sure you are preapproved for a mortgage before the search gets underway. Also, have a firm commitment to the cash you have to work with.

So How Do We Help Our Clients :

  1. Provide guidance in which 40+ years of experience brings to the table (including 18 yrs in the financing/mortgage biz). I have seen A LOT.


  1. Provide the tools to help figure out how much house you can afford. The Key Factors in calculating affordability :


    • Income
    • Funds Available
    • Debt and Expenses
    • Credit Profile

Start with our Mortgage Calculator


  1. Encourage getting preapproved for a mortgage. Why? Offers will not get accepted without being preapproved. Also, who doesn’t want Faster Closings and LESS Stress with the Mortgage Qualification Process? Trust me! And if you need a referral, I got you covered.

Give me a call (317) 625-0655, and let us show you how We work harder to make good things happen!

Next week, Creating a Bidding War, and boy, do I have a story for you!

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