What is the difference between pre-qualification and pre-approval?
Pre-qualification is a lender’s opinion of your ability to purchase a home and is based on your verbal statement of income, employment history and available down payment. Pre-approval is a lender’s underwriting decision that you are conditionally qualified and is subject to the lender’s review of your completed application, credit check, appraisal and home inspection. You will receive a conditional pre-approval shortly after applying for your loan at Mt. Vernon Mortgage. You will receive an unconditional pre-approval after we process the financial documentation you supply us after your application. When it comes to writing an offer for a home, a pre-approval letter contains stronger language to the seller and the listing agent than a pre-qualification. You, the buyer, have the increased negotiating leverage of cash buyer status because the mortgage is already in place. A pre-approval can often be a determining factor in winning the contract in a competitive bid situation.
Pre-qualification is a lender’s opinion of your ability to purchase a home; pre-approval is an underwriter’s decision that you are qualified. When placing an offer on a home, a pre-approval letter contains much stronger language for the seller and the listing agent, and often is the determining factor in winning the contract in a competitive bid situation. You receive a conditional pre-approval shortly after returning your pre-qualification worksheet to me.
Pre qualification is when a prospective buyer discloses, either verbally or by providing documentation of, their income, assets and credit so that a lender can determine how much a borrower will be likely to afford in loan payments. A pre approval involves an underwriter and is a more formal review of your credit and income. A pre qualification will commonly only provide you with an idea of what you can afford while a pre approval will actually guarantee you a loan of a certain amount.
Pre-qualification is when a prospective buyer discloses, either verbally or by providing documentation of, their income, assets and credit so that a lender can determine how much a borrower will be likely to afford in loan payments. A pre-approval involves an underwriter and is a more formal review of your credit and income. A pre-qualification will commonly only provide you with an idea of what you can afford while a pre approval will actually guarantee you a loan of a certain amount.
