What are the differences between mortgage pre-qualification, pre-approval and final loan approval?
A mortgage pre-qualification is determined after a verbal loan interview. No credit is verified, and we merely calculate a maximum sale price for qualification based upon the good faith answers of the borrower. This information is particularly helpful when looking for a property to ensure that when you make an offer to the seller that you are within the range of what you can reasonably afford. A pre-approval goes one step further, where we pull credit from all 3 credit bureaus, and determine if the borrower truly meets the credit criteria of the lender. This approval is more concrete than the qualification, and will be subject to review of income and asset documentation, unless already provided. Final loan approval is granted upon review of credit, income and asset documentation. At this point we have verified all information the borrower gave us on the loan application as being true and correct. The appraisal has also been received at this point. We have the approval in writing from t
