Pre-Qual, Pre-Approval, or Credit Approved?

Most buyers start their home search the same way. They hop on Zillow, find a house they love, and want to go see it right away. The money part comes later, or at least that’s the plan.

The problem is that you can fall in love with a home you can’t afford, and by the time you find that out, you’ve already wasted your time and your agent’s.

I sat down with mortgage pro Eloy Martinez Jr. on the E612 Show to walk through the lending side of buying a home from start to finish. Eloy is a branch manager and loan officer with Citywide Home Mortgage. He’s been in the business for 25 years, and we’ve worked together for over 20 of them.

The reason I keep sending my buyers to him is simple. His yes is a yes, and his no is a no. There’s no gray area. When I’m presenting multiple offers to my sellers, if a buyer doesn’t have a real pre-approval behind their offer, that’s not an offer to me. It’s too risky.

In this video, we break down the difference between a pre-qual, a pre-approval, and a credit approval. We talk about what a lender actually needs to see before you start shopping, what escrow is and why your payment can change even on a fixed-rate mortgage, the down payment assistance programs most Michigan buyers don’t know about, and the financial mistakes that have killed deals days before closing.

If you’re thinking about buying a home, whether that’s this year or a few years from now, this is the stuff you need to know before you make your first move.

Here’s the full breakdown by topic:

00:00 — E612 Show Intro
03:41 — Series Continues
04:48 — Meet Eloy Martinez Jr.
06:20 — Eloy’s Background
09:36 — Getting Into Mortgages
14:31 — Starting the Process
17:07 — Pre-Approval First
18:19 — Approval Levels Explained
20:17 — Local Lenders Win
24:21 — Refinancing Explained
26:05 — Down Payment Help
27:19 — Escrow Explained
29:28 — Tax Adjustments
31:38 — Deal-Killing Mistakes
36:00 — When to Call
39:42 — Credit Score Myths
41:00 — Veteran Closing Story
42:32 — Final Takeaways

“If a buyer doesn’t have a real pre-approval, that’s not an offer to me.”

Key Takeaways

Start with a lender, not a listing. Before you browse homes or call an agent, find out what you can actually afford. A conversation with a lender lays the foundation for everything that follows.

Know the difference between a pre-qual, a pre-approval, and a credit approval. A pre-qual is a rough estimate. A pre-approval means a lender has reviewed your actual documents. A credit approval means an underwriter has already signed off. In a multiple-offer market, the stronger your approval, the stronger your offer.

Don’t make big financial moves during the process. No new cars, no new furniture, no new credit cards, no job changes. Even at 0% financing, new debt changes your ratios and can delay or kill your closing. If you’re considering a purchase, call your lender first.

Your credit might be better than you think. Credit Karma and your bank app use a different scoring algorithm than mortgage lenders. A soft pull from a lender gives you your real mortgage scores without affecting your credit. Some buyers find out they qualify the same day.

Down payment assistance programs exist, and most buyers don’t know about them. Michigan State Housing Development Authority (MSHDA) offers up to $10,000 in assistance statewide, though it’s not forgivable and must be repaid when you sell or refinance. The Ingham County program offers up to $30,000 and is forgivable after seven years. To qualify for the Ingham County program, you can’t own real estate at the time of application.

If you’re thinking about buying a home in the Greater Lansing area, whether you’re ready now or planning ahead, the best move is the first call. I’ll connect you with the right people and help you put a real plan in place.

Reach out to me at 517-204-3311, email me at Jeff@jeffburkeassociates.com, or visit michiganhomelife.com. To connect with Eloy Martinez Jr. directly, call or text 517-202-9904, or find him on Instagram, Facebook, TikTok, and LinkedIn as Eloy MortgagePro.