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What’s the Difference Between Pre-Qualified and Pre-Approved?
If you're planning to buy a home soon, you've probably heard the terms pre-qualified and pre-approved. But what’s the difference—and which one do you really need?
Let’s break it down for Baton Rouge buyers in 2025.
📝 What Does Pre-Qualified Mean?
Getting pre-qualified is a quick estimate of how much you might be able to borrow. You typically provide basic information—income, debt, assets—and the lender gives you a ballpark number.
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No credit check required
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Fast and informal
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Good first step if you’re just starting your search
BUT: It’s not a guarantee. Sellers may not take a pre-qualification seriously when reviewing offers.
✅ What Is Pre-Approval?
Pre-approval is a formal loan application. The lender pulls your credit, verifies your documents (pay stubs, bank statements, tax returns), and determines how much you can actually borrow.
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Stronger than pre-qualification
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Includes a letter you can submit with offers
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Shows sellers you’re serious and ready to buy
Why Pre-Approval Matters
In competitive markets like Baton Rouge, pre-approval can make or break your offer. Sellers want confidence that you can close quickly and won’t be denied financing last-minute.
Pro Tip: Start With a Trusted Lender
We work with experienced local lenders who can get you pre-approved quickly and explain all your loan options—FHA, VA, conventional, and even 100% financing in USDA areas.
📞 Ready to get pre-approved? Call Tracy Mathis at (225) 268-1110 or visit MovingTo225.com to start the process with our recommended lender partners.
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