EP. 7 - Pre-approved vs Prequalified: The Biggest Mistake Homebuyers Make

A mortgage preapproval carries real weight, while a prequalification letter often does not, and that difference can determine whether your offer is accepted or ignored.

In this episode, Ryan Marks breaks down the critical differences between a mortgage preapproval and a prequalification letter, why sellers and listing agents demand a true preapproval, and how many buyers unknowingly lose homes by submitting weak prequal letters.

We explain what documentation lenders actually review for a preapproval, why prequalification letter are often based on unverified information, and how buyers can still obtain a strong preapproval using Non QM loan programs, even if they are self employed, have variable income, or do not qualify under traditional lending guidelines.

This episode also covers how Non QM preapprovals work, what documents are required, and how having the right letter can strengthen your negotiating position in competitive markets.

If you are serious about buying a home, this episode explains why a real preapproval is not optional, it is essential.

In This Episode:

• What a mortgage preapproval is and why it matters
 • What a prequalification letter is and why it carries little weight
 • Key differences sellers and agents look for in a preapproval letter
 • How lenders verify income, assets, and credit for a true preapproval
 • Getting preapproved using Non QM loan programs
 • Options for self employed and alternative income borrowers
 • How the right preapproval strengthens your offer and negotiating power

Tools and Resources

Visit https://www.seimortgage.com for Non QM loan programs, preapproval resources, and tools for homebuyers.

DISCLAIMER - Ryan Marks is a Licensed Mortgage Loan Originator (NMLS #519138) operating under The Turkey Foundation, Inc. (NMLS #236669), an Equal Housing Lender. Ryan conducts mortgage origination under his DBA, The Everyday Lending Group. SEI Mortgage is an educational brand only. It is not a mortgage lender, does not issue pre-approvals or loan estimates, and does not extend credit in any form. All information provided in this podcast is for educational and informational purposes only. Nothing in this episode should be interpreted as: Legal advice, financial advice, tax advice, real estate advice, a commitment to lend, an offer, quote, or guarantee of loan terms. Loan guidelines, program availability, rates, underwriting rules, and qualification methods for Non-QM mortgage programs can change at any time and may vary by lender, investor, market conditions, and state regulations. Examples given are hypothetical and may not reflect actual terms available to any borrower. Listeners should independently verify all calculations, assumptions, and program details with qualified professionals. Always consult with a licensed mortgage lender, real estate agent, CPA, financial advisor, or attorney before making decisions related to home financing, investing, or credit. This podcast is not affiliated with, endorsed by, or acting on behalf of Fannie Mae, Freddie Mac, FHA, VA, HUD, or any government agency. No government agency has reviewed or approved the content of this recording. The Turkey Foundation, Inc. 1805 E Garry Ave, Santa Ana, CA 92705 Equal Housing Lender