HOW ARE PRE-QUALIFY AND PRE-APPROVAL DIFFERENT?
Pre-qualification is an informal way to see how much you may be able to borrow. You can be “pre-qualified” over the phone with no paperwork b telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ball park figure of the amount you may have available to spend on a house. Pre-approval is a lender’s actual commitment to lend to you. It involves assembling the financial records mentioned in Question 46 (without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and show sellers that you are serious about buying.
