Whats the difference between a pre-approval letter and a pre-qualification letter?
Your lender will give you a pre-qualification letter after s/he has done a brief analysis of your financial situation. This may or may not include checking your credit. However, the letter will usually say it’s contingent on various factors, such as the verification of what you’ve told them. A pre-approval letter is more thorough, and will include a credit check. This letter is more likely to say that you’re approved for a home as long as your financial situation doesn’t change (i.e., you don’t buy a car while you’re trying to buy a house, etc.) Some sellers or builders will require a pre-approval letter, and few won’t. You can find a list of some lenders we trust here.
