What is the difference between Pre-Qualification & Pre-Approval?
A. A Pre-Qual is an early evaluation by a lender of a potential home buyer’s credit report plus earning, savings and debt info. The homebuyer gets a nonbinding estimate of the mortgage amount the borrower would qualify for or how much house the borrower can afford. Buyers who pre-qualify can go a step further and seek pre-approval. Pre-Approval means the lender has contacted the borrower’s employer, bank and other places to verify all claims of earnings and assets. In return, the borrower receives a letter stating that the lender is willing to grant a mortgage for a specified amount, within a limited period of time.
