Are You Pre-Qualified, Pre-Approved or Approved for a Santa Cruz Real Estate Mortgage?

Posted by Lauren Spencer on Tuesday, October 26th, 2010 at 11:01pm.

One of the more frustrating aspects of buying Santa Cruz real estate is qualifying for a mortgage that will allow you to buy the home of your dreams. Lenders use terms to describe your loan status that may be confusing.

For example, what is the difference between being pre-qualified, pre-approved or approved for a mortgage on your Santa Cruz real estate?

• Pre-Qualified – This just means that the lender may approve you for a loan if everything checks out. Pre-qualification is based solely on information you give the lender about your income and debts. This is no guarantee that you will get a loan. People do lie about their finances, so the lender won’t even be able to give you a possible loan amount at this point.

• Pre-Approved – Once your lender pulls your credit report, they can give you an idea of what kind of loan you may get. When you’re pre-approved, you still have no guarantee that you will get a loan, but you have a better idea of your price range. Sellers like working with people who are pre-approved because it shows that their credit has been verified, and they are more likely to qualify for a loan.

• Approved – When you are approved for a loan, your financial records have been verified, and the lender can say for sure how much they are willing to lend you for a particular home. You can be approved for a mortgage only after the lender has approved both you and the home. Once you have approval, you can move forward with the purchase.

For more information about the mortgage approval process for purchasing Santa Cruz real estate, call me today at 831.662.6522 or email me at or visit my website at





About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

Join Lauren On Social Media

Leave a Comment