Skip to content
Premier Bank Logo
Premier Bank Logo
Log into Online Banking
New to Online Banking?
Log into Online Banking
New to Online Banking?
Log into your Wealth account

How to Get Pre-Qualified for a Home Loan

Pre-Qualify for a Home Loan

You may have heard the terms pre-qualification and pre-approval used interchangeably, but they have different meanings. Here’s the difference between pre-approvals and pre-qualifications and how – and why – to do both.

The Difference Between Mortgage Pre-qualification and Pre-approval

A pre-qualification for a mortgage is the first step you’ll take in the mortgage pre-approval process. Many lenders don’t charge a fee for a pre-qualification, and this is a simple process you can complete online or over the phone.

For a mortgage pre-qualification, your mortgage lender will review your income, debt and assets to give you a pre-qualification letter, which is a high-level estimate of how much they would lend you for a mortgage and the maximum mortgage payment you can afford. Keep in mind that just because you can qualify for a certain mortgage payment doesn’t mean that’s the best way to set your budget.

Getting pre-approved1 for a home loan helps you determine how much you can truly afford. It takes the guesswork out of knowing how much a home will cost you; and helps sellers take your offer more seriously. A pre-approval for a mortgage is much stronger than getting pre-qualified for a mortgage. This will require your mortgage lender to pull your credit so they can provide a pre-approval letter that provides a more accurate view of your interest rate and the specific amount that you can take out for a mortgage. Pre-approval letters are valid for 60 to 90 days, and most lenders charge a fee.

1Premier Bank does not offer Preapprovals or Preapproval letters.