Before you begin your home search in earnest, I highly recommend that you work with a lender to get preapproved for a home. Many home buyers will talk to a lender quickly and get prequaliﬁed, but this is not the same thing.
Preapproved buyers are ahead in the home buying game. If you make an oﬀer on a home and then apply for a loan instead of the other way around, you are at the mercy of the lender who now knows that you don’t have time to shop around.
A preapproval letter from a lender will also give you an edge when multiple oﬀers have been made on a house. Preapproved buyers generally close escrow more quickly, since most of the paperwork has already been taken care of.
PreQualiﬁcation is only a loan agent’s opinion that you’ll be able to obtain ﬁnancing. No veriﬁcations are made, so formal approval is not issued.
PreApproval means your loan application has been taken through a rigorous procedure, including a review of your credit report. Preapproval saves you the time of looking at houses you can’t aﬀord.