Whats the difference between pre-approval and pre-qualification?
People often confuse pre-approval with pre-qualification. The pre-qualification process is simply being asked a few questions from a loan officer who then hands you a pre-qualification letter. The pre-approval process is much more complete. Basically the pre-approval process is much the same as a full approval, except for the appraisal and the title search not being done at this time. When you are pre-approved, you become like a CASH BUYER, and more importantly, have negotiating power over the seller. Typically in multiple offer situations, having a pre-approval can make the difference between having your offer accepted or loosing the house you want. Also, because you are in a better position to negotiate price, homebuyers have been able to save thousands of dollars. In todays competitive real estate market, most Realtors will not show you homes before seeing a pre-approval. They do not want to waste your time, their time, or the sellers time. Reputable mortgage companies will pre-appr
