SAN FRANCISCO (KGO) -- Do you know the difference being pre-qualified and pre-approved by a mortgage lender? Michael Finney has another 7 On Your Side Quick Tip for you!
When you're pre-qualified, the lender takes what you say at face value. So if you say you make a thousand dollars a month, that's how much they write down. You tell them what your bills are, they accept that as fact and they give you a pre-qualification letter.
However, when you look for a pre-approval, they actually take a look at your paystubs, they pull your credit report. They know a lot about you. They're actually willing to give you a loan if you find the right house.
And that's why being pre-approved is so important. Home owners know the difference between someone who is looking and someone who is serious. And when you're pre-approved, you look serious.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
QUICK TIP: Pre-qualified vs. pre-approved
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