View video transcript

Mortgage Basics: Prequalification or Pre-Approval – What Do I Need?

[MUSIC PLAYING]

(SPEECH)

Should you complete a prequalification or a pre-approval? They're both valuable parts of the home buying and mortgage process. But your situation determines which you're ready for.

(DESCRIPTION)

Two sheets of paper are shown and combine. A house is shown on the paper.

(SPEECH)

Prequalification is the preliminary discussion about financing a mortgage.

(DESCRIPTION)

A paper airplane is made from the sheets of paper and flies across the screen.

(SPEECH)

So if you're wondering if home-ownership is even right for you or you're unsure about your mortgage options, a prequalification might be the right way to start exploring your possibilities.

(DESCRIPTION)

A woman is observing a computer with properties displayed. A compass is shown and point to different homes, resembling the different renting options you will have.

(SPEECH)

It can also be a helpful first step if you're starting a full-time job after finishing school or you aren't sure about your credit and price range.

(DESCRIPTION)

A student in a graduation gown throws her hat into the air. The hat expands into a blue screen and shows a stack of money and a pie chart.

(SPEECH)

Pre-approval is more specific to the final purchase. But it's not a commitment to borrow or a commitment by the bank to lend.

(DESCRIPTION)

A hand scrolls through images of houses on a phone.

(SPEECH)

You might want to start the pre-approval process if you're shopping for homes, have a real estate agent, or if you've already defined your price range.

(DESCRIPTION)

A man and a woman stand next to a house with a “FOR SALE” sign.

(SPEECH)

If you're ready, a potential lender will evaluate all of your financial information and help you determine the mortgage program for a particular home, or a price range if you're deciding between a few.

(DESCRIPTION)

Sheets of paper appear with dollar signs and text. A man and a woman shake hands. Three homes appear in circles above the hands.

(SPEECH)

A pre-approval usually lasts around 90 days. So it's good to get pre-approved when you've made up your mind about buying a home, so prequalification or pre-approval.

(DESCRIPTION)

A calendar flips through the pages. A family and dog appear next to a home.

[MUSIC PLAYING]

(DESCRIPTION)

A paper airplane flies across the screen. Logo, US Bank. Equal Housing Lender Disclaimer Messaging.

 

Mortgage basics: Prequalification or pre-approval – What do I need?

See if prequalification or pre-approval is right for you.

Tags: Home, Prequalification, Home buying, Mortgage, Loans
Published: April 24, 2018

So you’re at the point in your life when you’re thinking about buying a house, but you’re not quite sure how much house you can afford — or if you need proof of that amount before talking to a real estate agent.  Is it important to get prequalified or pre-approved by a lender before you start looking? Learn the difference between the two and how such documentation might help you in the home buying process.

To learn more about the home buying process, watch other videos in this series:

Mortgage basics: 3 key steps in the home buying process

Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Mortgage basics: How does your credit score impact the home buying experience?

 

Ready to start your pre-qualification or pre-approval journey? Learn more.

 

Mortgage and Home Equity products are offered by U.S. Bank National Association. Loan products are offered by U.S. Bank National Association and subject to normal credit approval.