🏡 Prequalification vs. Pre-Approval: What’s the Difference and Why It Matters

If you’re thinking about buying a home, you’ve probably heard both “prequalification” and “pre-approval” tossed around. While they sound similar, these two steps are not the same — and knowing the difference can give you a serious edge in today’s competitive market.

Let’s break it down. 👇

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✅ What is Prequalification?

Prequalification is like a quick snapshot of your financial situation. You provide a lender with some basic information — like your income, debts, and assets — and they give you an estimate of how much you might be able to borrow.

📝 What it involves:

• Basic self-reported info (no documents yet)

• Soft credit check or none at all

• Fast — often done online or over the phone

💡 Why it’s useful:
It’s a great first step to see what’s in your budget before house hunting. But remember, it’s just an estimate — not a guarantee.

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✅ What is Pre-Approval?

Pre-approval is the real deal. It means a lender has verified your financial info (like pay stubs, tax returns, and credit score) and conditionally approved you for a mortgage up to a certain amount.

📋 What it involves:

• Submitting official documents

• Hard credit check

• A pre-approval letter (yes, the one sellers love)

💪 Why it’s powerful:
Being pre-approved shows sellers you’re a serious, qualified buyer. In competitive markets like DFW, it can be the difference between getting the home you love — or losing it to someone else.

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So… Which One Do I Need?

• If you’re just starting: Go with prequalification to get a feel for your price range.

• If you’re ready to shop: Get pre-approved so you can make strong offers and close faster.

👉 Pro tip: Some agents (myself included!) won’t show homes until you’re pre-approved, because it helps protect your time and energy.

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Final Thoughts 💭

Both steps are important in your home-buying journey, but pre-approval gives you the competitive edge when it really counts. If you’re not sure where to start, I can connect you with trusted local lenders and walk you through the whole process.

📞 Let’s chat — I’m here to help you feel confident and prepared every step of the way.

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