What is the difference between “Prequalified” and “Preapproved”?
A prequalification consists of a discussion between a home buyer and a loan officer. The loan officer collects basic information regarding the customer’s income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The prequalification is not a full mortgage approval, but estimates what a home buyer can afford.
A prequalification consists of a discussion between a home buyer and a loan officer. The loan officer collects basic information regarding the customer’s income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The prequalification is not a full mortgage approval, but estimates what a home buyer can afford. A preapproval, on the other hand, is a comprehensive approach using basic information as well as electronic credit reporting. Preapprovals, in most cases, are true mortgage commitments. The lender commits to financing your home and indicates the total mortgage amount available to you.
A prequalification is not a full mortgage approval, but an estimation of what you can afford. The loan officer collects basic financial information regarding your income, monthly debts, credit history and assets, then uses this information to calculate an estimated mortgage loan amount for you. A preapproval is a comprehensive decision using the same basic financial information as well as an electronic credit report. Preapprovals, in most cases, are true mortgage commitments. The Credit Union commits to financing your home and indicates the total mortgage loan amount available to you.
