Pre-Approved vs. Pre-Qualified

In a competitive market, the strength of your offer can make or break the deal—and it all starts with your financing.

•  The difference between lender letters—and what they signal
•  What documents you'll need for a solid pre-approval
• Why preparation = power (especially in multiple offer situations)

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Checklist:

✔ Last 2 years of W-2s or 1099s
✔ 30 days of pay stubs
✔ 2–3 months of the most recent bank statements
✔ Credit report review
✔ Debt-to-income ratio evaluation

Tina’s Tip: Ask your lender for a full underwritten pre-approval if you’re in a hot market. It can give you a competitive edge.

The Difference Between Lender Letters—And What They Signal

Not all approval letters are created equal—and in a competitive market, the wrong one can cost you your dream home.

Here’s the breakdown:

Pre-Qualified

• Based on basic information you provide to the lender (income, debts, credit score)

• Typically doesn’t require document verification

• Gives a general idea of what you might qualify for

• Good for early exploration—but weak for serious offers

Seller Translation: “They’re browsing. Not ready.”

Pre-Approved

• Based on a full review of your income, assets, credit, and debts

• Involves submitting documentation to the lender

• Gives you a realistic, strategic budget

• Carries much more weight with sellers and agents

Seller Translation: “They’re ready. Let’s consider them seriously.”

Tina's Pro Tip: If you're serious about buying in today’s market, pre-approval isn't optional—it's your advantage.

What Documents You’ll Need for a Solid Pre-Approval

Getting pre-approved is simpler than it sounds. Here’s what you’ll need to gather:

Employment & Income:

• Last 2 years of W-2s or 1099s 

• Last 30 days of pay stubs

• Employment verification (or business license if self-employed)
  
  

Assets:

• 2–3 months of the most recent bank statements for checking, savings, money market, etc

• Retirement and investment account summaries (if applicable)

• Proof of additional assets being used to qualify

Credit:

• Authorization for credit check

• Explanation of any major debts or recent changes (new credit cards, large purchases, etc.)
  
  

Tina's Tip: Having your documents in digital form makes everything smoother. 

Why Preparation = Power (Especially in Multiple Offer Situations)

In a competitive market, the most prepared buyer often wins—not the one with the highest offer.

Here's why:

• Pre-approved buyers move faster: You can write offers with confidence the same day you find the right home.

• Sellers view you as lower risk: They know your financing is strong and delays are unlikely.

• Your offer can include shorter timelines: This appeals to sellers who want a smooth transaction.
  
  

🗝️ A solid pre-approval gives you leverage, credibility, and speed—all of which are priceless when great homes don’t last long.

Let me be clear: if you’re even thinking about buying, get pre-approved now. It’s free, it’s simple, and can put you in a position of power when the right opportunity comes along because you will be prepared to act quickly. 

📲 Need a lender recommendation or want to know where to start? Let’s connect.