The main difference between a mortgage pre-qualification and pre-approval.
Today, let’s discuss the distinction between being pre-qualified and pre-approved for a home loan.
When purchasing a home, getting pre-qualified is a swift process. By speaking with your loan officer over the phone, you provide basic information about your income and debts. Afterward, they inform you that you’re pre-qualified for a loan.
Pre-approval, on the other hand, demands more detailed information. You’ll need to verify your income, assets, liabilities, and debts. This involves submitting documents such as tax records, income statements, bank statements, and more. The loan officer thoroughly reviews these documents, enabling you to proceed to the next step.
The pre-approval letter signifies your request to the loan officer to submit your file for underwriting. This results in a fully underwritten pre-approval for a property. When you’re ready to make an offer on a house, having a fully underwritten pre-approval enhances your position compared to those who delay sorting out their financing.
If you have inquiries or need assistance, our skilled loan officers are available to help. Feel free to call or email us. We’re here to guide you through the buying process.