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Why Getting Pre-Approved Matters (and Why Pre-Qualification Isn’t Enough)
- Craig Knox
- Jun 9
- 3 min read
Updated: Jul 15
If you’re a first-time homebuyer, thinking about buying a home, one of the first steps in your journey isn’t scrolling through listings or touring open houses—it’s talking to a lender. The Pittsburgh Real Estate market moves fast, and mortgage pre-approval gives you a competitive edge as a home-buyer. You’ll want to get pre-approved before diving in too deep.
But what does that actually mean, and why does it matter so much? Let’s break it down.
Pre-Qualified vs. Pre-Approved: What’s the Difference?
These two terms sound similar, but they’re not interchangeable—and knowing the difference can make or break your offer.
Pre-Qualified: This is a quick, surface-level estimate of what you might be able to afford. It’s usually based on self-reported information like your income, debts, and assets. No documentation is verified. It’s useful for getting a ballpark figure but doesn’t carry much weight with real estate professionals or sellers.
Pre-Approved: This is the real deal. With pre-approval, a lender verifies your financials—checking your credit, reviewing your W-2s or tax returns, pay stubs, and bank statements. You’ll get a formal letter stating how much you’re approved to borrow. This shows agents and sellers that you’re not just browsing—you’re a serious buyer, financially ready to move forward.
Why Pre-Approval Is a Must
Agents Won’t Work With You Without It
Many buyer’s agents won’t schedule showings or represent clients who haven’t been pre-approved. Why? Because without it, there's no proof you can actually purchase the homes you’re viewing. It protects their time—and yours.
Sellers Won’t Take You Seriously
When you submit an offer, the seller wants to know that you can actually follow through. Offers that don’t include a pre-approval letter often go straight to the bottom of the pile—if they’re considered at all.
You’ll Know Your Real Budget
Looking at homes before you know what you can truly afford can lead to disappointment—or overextending yourself. Pre-approval gives you a clear picture of your price range and monthly payment, including taxes and insurance.
It Speeds Up the Buying Process
In a competitive market like Pittsburgh’s, being pre-approved allows you to act fast. When the right home hits the market, you’re ready to pounce—with paperwork in hand.
The Pre-Approval Process in a Nutshell
Here’s what to expect when getting pre-approved:
You’ll submit an application with a lender (many offer online options).
Be prepared to provide documentation: proof of income, employment, assets, debts, and identification.
The lender will pull your credit and assess your financial profile.
If all checks out, you’ll receive a pre-approval letter outlining how much you can borrow, along with any conditions.
A Quick Word on Credit
Getting pre-approved involves a hard credit inquiry, which can cause a small dip in your score—but don’t stress. It’s a normal part of the process and far less risky than losing out on your dream home because you weren’t ready.
Pro Tip: Know Your Mortgage Score
Before applying for pre-approval, it’s smart to check your credit using a service like MyFICO—the only place where you can see the same FICO® Score version mortgage lenders actually use. Most free credit apps show your consumer score, which can differ significantly from your mortgage score. Knowing where you stand using the right scoring model can help you catch issues early, improve your odds of approval, and even secure a better interest rate.
Ready to get pre-approved? As a Berkshire Hathaway HomeServices The Preferred Realty Agent, we offer everything buyers and sellers need under one roof. Our in-house Mortgage Company, West Penn Financial works with over 20 lenders and has experience with many home buying programs to get you the best rate.
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