What are the differences between pre-qualification, pre-approval, and final approval?
A pre-qualification provides you with an idea of how much you can borrow based on the income and debt information you provide the home mortgage specialist. At this stage, the information you provide the home mortgage specialist may not be verified, and the pre-qualification serves only as an estimate of what you might borrow. In some cases, if you present proof of your income and liquid assets used for closing, a pre-approval subject to an appraisal can be issued before you leave the application. In other cases, employment, asset, and credit are verified after the application is taken. A pre-approval can give you more bargaining power when you are ready to make an offer on a home because the seller can be confident that you will actually be able to buy the house. A pre-approval can also give you the peace of mind that you will be able to obtain the loan you need in order to purchase the property you have selected. Final approval occurs when the property is appraised, all required docum
