Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are the differences between mortgage prequalification, pre-approval and final loan approval?

April 26, 2017Approval differences final loan mortgage pre-approval prequalification

0

10 Posted

What are the differences between mortgage prequalification, pre-approval and final loan approval?

1 Answer

0

10 Posted

Prequalification is the process where the lender will look at a basic copy of your credit report and use the information you supply to determine how much mortgage you can afford based on your income. No-accounts or employment information is verified. Pre-approval occurs when all credit and employment is verified and the mortgage is approved, subject to the appraisal of the property you have chosen to buy. Final loan approval occurs when the property has been appraised, all documentation is in the hands of the lender and all contingencies have been met.