What is the difference between a Pre-qualification and Pre-approval?
A Pre-qualification is a method used by your lender to determine how much you will be eleigible to borrow based on your “stated” income. Verification, credit check and documentation is not usually necessary, but may be required by some institutions. An application is not submitted at this time and is not a guatantee of approval. A Pre-approval is a method used for determining your ability to afford a home by filling out an application, having your credit run and verifiying your information. This method will establish your buying ability to get a home loan worth a certain amount even before you have actually found a home.
