The Difference Between Pre-Qualified and Pre-Approved

CodeMark TV Episode 26

Welcome to our new series, #YourSuperStar

We’re going to be breaking down the entire process of buying a house, and the mortgage process, into the bits and pieces.

So we started with pre-approvals on the last couple episodes, that was the broad stroke. Let’s dissect these things.

Now most of you might think that being pre-approved and being pre-qualified are the same thing. Nope. Think of it like this… When you go see the doctor, you don’t know what’s wrong with you, and he doesn’t know what’s wrong with you either. Then, they start running through a checklist of things. They open up your eyes. They open up your mouth. They get in your ear, etc. They are doing these things to essentially pre-qualify you. They’re trying to find out what’s wrong.

Now if there’s anything serious they’re going to say “Know what, let’s go ahead and get an x-ray done.” And that, is a little bit more like a pre-approval.

So how does that relate to us in the mortgage business?

Well, you come to our office. You sit down and say “Hey Mark, I want to buy a house.” And I reply, “Fantastic, what’s your credit score?” and “That’s good, how much do you make?” and “Not bad.” and “How much do you want to put down?” Okay, I’ve just pre-qualified you (tip: you can pre-qualify online here).

Now, we’re going to have to make sure that all of that is valid, or proof. Thus, pre-approval. I’ll pull your credit. “Hey, you’re right, your credit is awesome!” Then I’ll ask for your paycheck stubs. “Wow, check you out man, you do make a lot of money.” We’ll move on to your bank statements. “I can see where we’re going to get a nice large down payment.”

Now I can put together and send out a pre-approval letter. The pre-approval letter let’s you make an offer with confidence. Because I, in confidence as well, have just pre-approved you.

Check us out on live, all the time, on Friday Lunch with Mark. You can also like our Codemark Financial page, you can go to Youtube, check us out on all of our other past Codemark TV episodes, #superstar, because you’re a superstar, and we’re your superstars. Until then, I’m Mark MacInerney President and CEO of Codemark Financial. I’ll see you.

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