Whats the difference between pre-qualifying and preliminary-approval?
A preliminary-approval is issued by a loan officer and is based upon the information contained in your loan application. The loan officer examines your employment, income, credit history, and indebtedness and determines the dollar value of a loan for which you could be approved. However, the loan officer does not make final loan approval so the preliminary-approval is not a final commitment to lend. The pre-qualification letter issued by the loan officer is used when making an offer to purchase property. It is generally based on information provided by the borrower but not verified by the loan officer or mortgage analyst. It gives the seller some level of assurance that you can obtain the loan you have requested and thus be able to purchase their property.
