What is the difference between being Pre-Qualified and Pre-Approved?
Posted by: kateg 4 years, 5 months ago
Pre-Qualification and Pre-Approval are oftentimes used synonymously, but they are two different terms.
Pre-Qualification is the first step in the mortgage application process. It is an informal determination by a lender or mortgage broker stating how much mortgage you can afford.
Pre-Approval is a guarantee in writing by a lender to grant you a loan up to a specified amount.
When you are writing an offer with a loan contingency, it is best to include a pre-approval letter with your offer to tell the Seller that you are a qualified buyer.Share on Twitter Share on Facebook
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