The two terms seem interchangeable. A pre-qualification means... you're qualified. Pre-approved means... you're approved. Which sounds like you're qualified.

Is there a clear difference between qualified and approved?

ABSOLUTELY.

Pre-qualified means that on the surface with generalized information provided by you, a mortgage should be approved AND for what they tell you. The problem is, sometimes the numbers are close, approximate, or other times, waaaaay off. You might think you've been working overtime for years. Paystubs may say otherwise. Same for your credit score. Credit Karma is notorious for being off. Just ask your lender or mortgage broker. It's an educated guess or estimate based on what's available. That's old, new, correct, and often incorrect information to form a number rarely based on your actual situation. If you think you have a 720 but have a 660. That changes your options.

Pre-approved is always the winner. It means you've taken the time to pull bank statements, submitted pay-stubs, had your lender of choice (check out George Dunlap with Stockton Mortgage NMLS# 2115932 if you're looking for a reputable loan originator) pull your credit score from one OR MORE of the three credit scoring companies Transunion, Experian, or Equifax, and had your debts properly reviewed.

The difference is obvious.

The results and step to buying a home is obvious.

Attempting to buy with pre-qualified status is a maybe.

Putting in an offer when you're pre-approved is a huge, meaningful step towards actually buying.

We can help. As a member of @Greater Louisville REALTORS @eXp Realty and an established real estate team with over 400 transactions helping people find their first home as well as their forever home, we have the tools to make your dreams come true.

Call us at (502) 306-3580, email me (Monica Dunlap Realtor®) monica@totallyabouthouses.com, or visit our website to start searching for your new home at www.TotallyAboutHouses.com.