Blog - preapproval

Pre-approval vs. Loan Commitment: Which One Makes Me a More Competitive Buyer?

Thursday, February 16th, 2023 at 10:20am.

When purchasing a home, a pre-approval and a loan commitment are both important steps in the mortgage process, but they are different.

A pre-approval is a preliminary assessment of a borrower's creditworthiness and ability to qualify for a mortgage. To obtain a pre-approval, the borrower typically provides financial and personal information to a lender, who will then review the information to determine the borrower's credit score, income, debt-to-income ratio, and other factors that could affect their ability to obtain a mortgage. A pre-approval letter provides the borrower with an estimated loan amount they are likely to qualify for and can help demonstrate to sellers that the borrower is a serious buyer.

One thing to remember is that NO…

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Will Pre-Approval Hurt My Credit?

Monday, January 30th, 2023 at 11:00am.

Getting mortgage pre-approval is one of the first steps toward buying your dream home. Pre-approval boosts the likelihood that the seller will accept your offer and gives you a detailed quote for your homebuying budget. 

But homebuyers often hesitate because they think that pre-approval hurts their credit score. Will it? 

The truth is that it will temporarily lower your score, as is true whenever a creditor pulls your credit report. But the benefits of getting pre-approved outshine the slight dip in your score.

Does a Pre-approval Impact My Credit Score?

A pre-approval usually requires a hard credit inquiry, although a soft inquiry is all that is needed for a pre-qualification. A hard inquiry can lower a borrower's FICO score by about…

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