Dedicated to Your Success


Dated: May 30 2023

Views: 19

Prequalified and preapproved are two terms commonly used in the context of mortgage loans or credit applications. Here's the difference between the two:


Prequalification is an initial assessment done by a lender based on information provided by the borrower. It is a preliminary step to determine if the borrower meets the basic criteria for obtaining a loan or credit. The process typically involves the borrower providing information about their income, debts, and assets. The lender then evaluates this information and provides an estimate of the loan amount the borrower may be eligible for. Prequalification does not involve a thorough analysis of the borrower's credit history or verification of the information provided. It is generally a quick and informal process.

In summary, prequalification is a preliminary assessment based on self-reported information, providing an estimate of the loan amount, while preapproval involves a thorough evaluation and verification of the borrower's financial details, providing a stronger indication of loan eligibility. Preapproval holds more weight and is often seen as a more reliable indication of a borrower's ability to obtain credit.

Blog author image

The Loredo Group at eXp Realty

Hi there! We're Haley & Michael we first dipped our toes in real estate in 2018. We quickly came to realize that we had a passion for helping people find their dream homes. In 2020 in the middle o....

Latest Blog Posts

Santa Cruz County dog-friendly hiking adventures

Santa Cruz County dog-friendly hiking adventures1. Wilder Ranch State ParkNestled along the coastline of Santa Cruz, Wilder Ranch State Park is a dog-friendly paradise. With over 34 miles of trails,

Read More

5 Ways to Enjoy Fall in Santa Cruz County 🍂

As the summer sun starts to fade and the leaves begin to change, there's something truly magical about the fall season in Santa Cruz County. With its picturesque landscapes, mild weather, and an

Read More

The 3 Best Pies in Santa Cruz County

When it comes to culinary delights, Santa Cruz County has a lot to offer, and one of the most delicious treats you can find here is pie. Whether you're a fan of sweet, savory, or somewhere in,

Read More

Title Companies - What Do I Need to Know?

When it comes to the intricate process of buying or selling real estate in Santa Cruz County, there are many crucial steps that need to be taken to ensure a smooth and secure transaction. One of

Read More