By Charity Ohlund, VP of Sales & Marketing | Fountain Mortgage
When you’re shopping for a home, these two words start flying around fast: Pre-qualified and Pre-approved.
They sound suspiciously similar. They both involve a lender looking at your finances. And they both feel like you’re one step closer to getting those Joanna Gaines throw pillows you’ve been eyeing.
But — they are not the same thing. (And if you’re making an offer without knowing the difference, it could cost you the house you love.)
Pre-qualification: The warm-up
Pre-qualification is like a friendly chat over coffee. You tell the lender about your income, your debts, your hopes and dreams. The lender says, “Sounds good! Based on what you told me, you could probably afford around this much house.”
It’s quick. It’s easy. And it’s…kind of like guessing someone’s weight from across the room. It’s an estimate, not a commitment.
Good for:
- Starting your home search
- Getting a very general sense of budget
- Dreaming about Pinterest boards
Pre-approval: The real deal
Pre-approval is the full check-up. You supply documents — W-2s, paystubs, tax returns, bank statements. The lender pulls your credit. They verify your information. They say, “We’ve crunched the numbers. You are officially approved for this amount.”
You get an official pre-approval letter — and when you submit an offer with it, sellers know you’re serious.
Good for:
- Making strong offers
- Winning in a multiple-offer situation
- Actually closing on a home
Why it matters
In today’s market, sellers don’t want to gamble. They want proof that you can buy their house — not just hope you can.
A pre-approval can make the difference between getting your offer accepted and watching someone else post “New Homeowners!” selfies from the driveway.
Bottom line:
Pre-qualification is where you start. Pre-approval is where you win.
If you want to get fully pre-approved (and learn a few pro tips for standing out), our team at Fountain Mortgage is ready to roll up our sleeves and make it happen.
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation.
Fountain Mortgage NMLS: 1138268
