10. Pre-approved for a mortgage
You want pre-approval for a mortgage instead of pre-qualifying. What is the difference? Prequalification is a letter that says the lender has assessed your credit and determined that you may be eligible for a mortgage loan. Many real estate agents and sellers, on the other hand, believe the letter is useless.
Pre-approval means the bank has given you conditional security to grant you a mortgage. The pre-approval process is much longer, as it involves looking at your entire finances – credit reports, income, debts and other liabilities, everything. Having a pre-approval letter gives you a substantial competitive advantage when buying a home.
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