Buying a house is a big step in every family’s life. Not only is it a huge financial decision, but it also takes a ton of work. Unless you have a boat-load of cash, you are going to have to deal with the mortgage process, which can be quite frustrating. But what few interested home buyers realize is how helpful pre-approval can be. Mortgage pre-approval can be the best way to more quickly acquire a home. With mortgage pre-approval, you’ll have the competitive edge when buying a home, having the money approved for your home before making the final deal. This will allow you to compete against those who do not yet have financial arrangements made. If you are interested in mortgage pre-approval here are some things you should know.

Pre-Qualified versus Pre-approved

Pre-qualified amounts are the mortgage amounts you can qualify for, or rather the maximum amount you can borrow for your home. It is a fairly simple process, and can be done over the phone. When providing a lender with an overall assessment of your financial situation including your debt, assets and income, the lender can help come up with a pre-qualified amount. But pre-approval is a little different. Pre-approval involves a more extensive financial background check including your credit score. With pre-approval, you can get an accurate measure of your mortgage amount.  This pre-approval will also give you a good idea on your interest rate total as well.


  • Pre-approval requires background checks
  • Pre-approval is more extensive
  • Credit score is taken into account for pre-approval only

Home Pre-approval

After the pre-approval process, you will receive a conditional commitment. The conditional commitment statement will include an exact alone amount in writing, which is the exact amount you are approved for. You can borrow less than the approved amount, but you may not be allowed to borrow more. Once you have found a home, you’ll also need a loan commitment that is given by a bank. To get this the lender must approve you and the house. For the house to be approved, it must be appraised at a value that is at or above the sale price. You cannot buy a home that is worth less than you are paying. Once a loan commitment letter is sent, the lender is certain that they will lend you the money.


  • Conditional commitment tells you exact loan amount
  • Home must be appraised and approved
  • Home must be appraised at sale value or more

Where to Get Pre-approved

Online you can find a number of different places where you can get pre-approved for a mortgage. Quicken Loans is one such place that can be done easily online or by phone. Those interested in borrowing can call their phone number or fill out a form online. Lending tree also offers pre-approval quotes that can also be useful. Not sure which lender you want? Zillow can help interested borrowers find a local lender that can help you get pre-approved.


  • Use Zillow to find lenders
  • Lending tree offers pre-approval quotes
  • Call or fill out an online form for Quicken Loans pre-approval


As mentioned earlier, getting pre-approved can give you the edge when buying a home. If you have already been proved for a certain amount, then you already have the money versus another person who will have to go through the process after finding the home. And anxious sellers may not be willing to wait. Additionally, you’ll have an easier time finding a home, because you’ll have the exact amount of money you have to spend on a home, which can make your home-buying decisions a lot easier. Surprisingly, not many people seek pre-approval, which may come as a shock after reading this article, so it’s important to give yourself that advantage.


  • Will make you a competitive buyer
  • Will provoke a sale from anxious sellers
  • Makes finding a home less complicated


Pre-approval may not seem necessary, but in fact can be incredibly useful for interested home-buyers. Pre-approval will allow you to go through the home buying process more quickly and easier than most. Don’t allow yourself to get cheated out of a home waiting for approval and get pre-approval now.