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Whats the difference in being pre-qualified and pre-approved for a loan?

April 26, 2017difference loan pre-approved pre-qualified

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Whats the difference in being pre-qualified and pre-approved for a loan?

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Being pre-qualified means that based on the preliminary information you gave when you applied for the loan (which may or may not always be accurate), you are qualified to buy a home in that range. However, it doesn’t mean that you will necessarily get a loan. Pre-approval is a more thorough process which involves doing a complete check on your financial and credit history to determine your creditworthiness. Getting pre-approved for a loan means that based on the check that was conducted, you are approved for a loan.