A pre-qualification is a very cursory conversation you may have with a large bank where they may ask you how much you make and might check your credit score. The conclusion will be something like, “Based on this information, you would potentially qualify for X amount”.
The problem is that it process doesn’t go into enough detail, doesn’t go through all the paperwork, and leaves a lot up to chance. This could cause a problem down the road when you have written an offer on a house, they accept your offer, and then something pops up that prevents you from closing on your loan.
Contrast that with what we do here at Benchmark Mortgage, which is a thorough pre-approval. A thorough pre-approval really involves looking at ALL of your financial paperwork- pay stubs, LES, bank statements, W-2’s, tax returns. It’s a careful analysis of your income, assets, and obligations. We leave no stone unturned. The goal through this proves is to identify and overcome problems long before they come up. That way when we tell you that you are pre-approved, you can go write offers with a strong level of confidence that your loan is going to close. Because of this process, we have a very strong reputation of closing on time or early, and actually closing when we tell you that you qualify for a property.