If you’re planning to buy a home, you might be wondering whether it’s better to get prequalified or preapproved for a mortgage. While both can help you understand your budget and options, there are some key differences to consider. Prequalification is a quick and easy process that gives you an estimate of how much you might be able to borrow based on basic financial information. Preapproval, on the other hand, involves a more detailed analysis of your creditworthiness and finances, and can give you a more accurate idea of what you can afford.
Ultimately, it’s up to you to decide which option is best for your needs and goals. Prequalification can be a good first step if you’re just starting to explore your options and want to get a sense of what you can afford. Preapproval, on the other hand, can give you a more concrete idea of what you can afford and help you stand out to sellers in a competitive market. Whether you choose to get prequalified or preapproved, working with an experienced lender can help ensure that you get the best possible terms and rates for your mortgage.