Pre-Qualification And Pre-Approval

Pre-Qualification And Pre-Approval

There are plenty of real estate terms used in transactions. Needless-to-say it can be confusing for both buyers and sellers trying to navigate the path.

The home loan process might feel overwhelming and difficult to understand. Both buyers and sellers find terms like Pre-Qualification and Pre-Approval used interchangeably, and it’s no wonder they find themselves wondering how to proceed.


The first step in obtaining a home loan is to talk with a lender and discuss your financial situation. The lender will discuss income, job stability, debt and credit.

Once they have performed a basic review of the qualifications and run credit, lenders in Arizona will issue a PQF (Pre-Qualification Form) to the potential buyer. This form will identify the maximum sales price, down payment requirement and basic terms of the loan, such as interest rate. The PQF is used to provide evidence that the buyer has been reviewed by a lender who is vouching for their ability to obtain a home loan.


A Pre-Approval is quite different. In this case, the lender collects all the necessary information and proof of eligibility and has it reviewed by the lender’s underwriter for approval. A Pre-Approval is almost like shopping with cash, the only remaining piece of the puzzle is to identify the property being purchased.

I have amazing lenders who love getting people Pre-Approved whenever possible. Contact me if you’d like me to put you in touch with my preferred lenders.

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