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What is prequalification? Does it mean the loan is approved?

April 26, 2017Approved loan mean prequalification

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What is prequalification? Does it mean the loan is approved?

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Prequalification is the initial step in securing a mortgage. A lender will analyze your current income, debt and basic credit history situation in order to qualify you for a maximum loan amount. This gives you a clear picture of your financial parameters. In preapproval, the lender verifies your income, debt and financial picture, approving the loan subject to a favorable appraisal of the property you select.