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Mortgage Education

Updated: Feb 1

Before you begin shopping for a home, enhance your buying power by getting pre-approved or pre-qualified.

Mortgage Education paper

Both options help you determine how much home you can afford based on the specific financial information you share with your lender. Especially with pre-approval, this gives you significant buying power with a seller who recognizes you will be approved for a loan.



Pre-qualification is an informal discussion between borrower and lender that helps you determine how much home you can afford. The lender estimates the amount that you can borrow based solely on what you tell them about your income and assets. The lender does no verification and consequently there is no guarantee you will qualify for the loan amount. Therefore, the lender is not bound to make the loan when you're ready to buy.


On the other hand, loan pre-approval requires that the lender verify your financial information, and does serve as a commitment to lend a specified amount based on that verified information. It is based on documented and verified information regarding your employment, your income, your liabilities, your assets, and the cash you have available to close on a home purchase.


To a seller, a lender's pre-approval letter is considerably stronger than a prequalification letter. If a seller knows your financing is secure, your offer is stronger. Pre-approval also gives you peace of mind as you shop for a home, knowing that you will qualify for the proper mortgage amount.

Rest Assured in Your Ability to Purchase.

The home mortgage process is more complicated than it used to be. Your goal is to have that pre-approval in hand for your Realtor® so that when you are ready to make an offer on your next dream home, the sellers will know your pre-approval and offer is the next best thing to cash. With the mortgage education in hand, you can now focus on truly finding the perfect home for you and your family.


All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. If you would like more information about buying a home in NC, our experts at EXP Realty are here to help. Contact us today to speak with a EXP agent about buying homes or land in North Carolina.

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