Pre-Qualification vs. Pre-Approval: Why one is Better than the other.

When you're gearing up to buy a home, knowing how much mortgage lenders will approve you for is crucial. If you find out you qualify for $200,000, you'll focus your house hunt in that price range.

That's where getting pre-approved for a mortgage becomes key—it's way better than just being pre-qualified. During a pre-approval, a lender digs into your income and credit score to figure out the exact amount they're willing to lend you. They'll then hand you a pre-approval letter stating this amount. When you find your dream home and are ready to make an offer, you can stick with that lender to finalize your mortgage.

To kick off the pre-approval process, gather documents like your recent paycheck stubs, two months of bank statements, last two years of tax returns, and your most recent W-2 forms. Your credit will also get a check. This thorough review sets pre-approval apart from pre-qualification, where you give an estimated income and lenders ballpark what they might lend you without verifying it.

Home sellers love seeing buyers with pre-approvals because it shows a lender has vetted your finances. This makes sellers more confident the sale will go through smoothly. So, if you're Brooklyn-bound and serious about buying, snag that pre-approval—it's your ticket to a smoother home-buying journey.