What’s the difference between a pre-qualification and a pre-approval?
A mortgage pre-qualification is simply a cursory review of your income, assets, liabilities and credit history with a qualified mortgage professional. A mortgage pre-approval is when you complete a formal mortgage application prior to finding a home, and a lender approves you for a pre-determined mortgage amount. The pre-approval will typically come with conditions that must be met prior to closing the loan; i.e. appraisal of the property and a fully executed sales contract.
