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Preapproved vs Prequalified

Not all pre-financing is the same. Learn about the differences between preapproval and prequalification.

Realtyless

2 minute read

Financing Preapproval and Prequalification

Financing doesn’t have to be complicated. Realtyless makes it easy to compare mortgages and find the best financing option tailored to you.

Not all pre-financing is the same. This article highlights the differences between financing preapproval and prequalification.


Financing Prequalificationl!

Financing Prequalification

Financing prequalification will provide a general idea of which homes you can afford. It is less in-depth and less accurate than financing preapproval. The lender may ask for some basic financial information which is generally self-reported and not verified by the lender with documentation. Sellers generally view prequalification as less trustworthy and the mortgage you ultimately secure could be significantly different than your prequalification.


Financing Preapproval!

Financing Preapproval

Financing preapproval provides an accurate mortgage estimate so you can focus your search on homes you can afford. The lender will review your financial situation and confirm your ability to make mortgage payments. They’ll generally ask for information and documentation about your expenses, income, and assets.

Realtyless makes it easy to send your preapproval application to three local mortgage loan officers (MLOs) of your choosing. This streamlined process makes it easy to compare rates and find the best financing option tailored to you.

The lenders will generally complete a credit check before issuing you a preapproval. A credit check is coded as a hard inquiry on your credit score and may temporarily lower your score by a few points. The good news is your selected MLOs on Realtyless all do a credit inquiry during a short period of time. The inquiries will be grouped together as a single credit check which has less impact on your credit score.


Summary

Financing preapproval is similar to financing prequalification but preapproval is more robust and accurate because it is backed by documentation and verification.

Financing preapproval guides your home search so you can focus on homes you can afford. As a preapproved buyer, you are able to view the detailed Home Facts report for all homes on Realtyless in your price range. And when it comes time, preapproval adds validity to your request for showings and your offer.

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Buyer Financing

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