Whats the difference between Pre-qualification, Pre-approval and Full Loan approval?
Pre-qualification: Pre-qualification is the first step in obtaining the mortgage that you need to purchase the home of your dreams. It’s a simple step where an institution examines your financial situation in terms of income and liabilities in order to establish your lending potential in terms of GDS and TDS. This is accomplished through the review of a simple application process that includes the pertinent information. It is important to note that this is not the same as a pre-approval, as credit has not been reviewed and income has not been verified and funds for closing are not verified. Pre-approval: Refers to the verification of the applicant’s ability to borrow. A pre-approval gives a potential home-buyer the advantage of knowing how big a mortgage they will qualify for and the ability to use this information in negotiating the final selling price of a home. Parts of the pre-approval process include an analysis of borrowers credit history, a review of the client’s employment hist
