Qualification vs. Pre-Approval: Whats the Difference?
As previously described, Pre-Qualification is merely a verbal exchange between you and the Mortgage Lender. The Mortgage Lender asks you questions about your income and expenses. From the answers that you provide to the Mortgage Lender, the Mortgage Lender provide you with an estimate of how much you are qualified to borrow, and how much you are qualified to buy. By contrast, with full Pre-Approval, you actually submit all of the documents that you would if you were actually applying for the mortgage loan. Here’s why this is important. A mortgage loan application actually consists of two parts. The first part is known as your Personal Financial Profile. Your Personal Financial Profile consists of a statement of your income and expenses, as well as your assets (items that you own) and liabilities (your credit obligations). The second component of a mortgage loan application is an Appraisal on the property that you will be purchasing. While we don’t know what property you are going to be
