|
|
 |
 |
| Back
to FAQ's > |
What
is the difference between pre-qualifying
and pre-approval? |
|
A
pre-qualification is normally issued by a loan officer,
who, after interviewing you, determines the dollar
value of a loan you can be approved for. However,
loan officers do not make the final approval, so a
pre-qualification is not a commitment to lend. After
the loan officer determines that you pre-qualify,
he/she then issues you a pre-qualification letter.
This pre-qualification letter is used when you are
making an offer on a property. The pre-qualification
letter indicates to the seller that you are qualified
to purchase the house you are making an offer on.
Pre-approval is a step above pre-qualification. Pre-approval
involves verifying your credit, down payment, employment
history, etc. Your loan application is submitted to
an underwriter and a decision is made regarding your
loan application. If your loan is pre-approved, you
are then issued a pre-approval certificate. Getting
your loan pre-approved allows you to close very quickly
when you do find a house. A pre-approval can help
you negotiate a better price with the seller, since
being pre-approved is very close to having cash in
the bank to pay for the house! |
|
|
|
|
|
|
|