What is pre-qualification vs. pre-approval?
(back to top) Pre-qualification is based upon the verbal information a borrower has relayed to the lender and becomes the basis of what the borrower is qualified to borrow. A pre-approval can be given once all of the supporting documentation has been sent in to the lender by the borrower and is verified as accurate.
We simultaneously give pre-qualification and pre-approval based upon the information you provide in the online application. Because this pre-approval is based on information provided to us verbally and as set forth on the application, it is considered conditional loan approval. • How much can I borrow and why? Your income, debt, and mortgage payments – loan qualification Income, debt, and mortgage payments are the primary factors which affect whether you qualify for a loan. If you do qualify for a loan, you can apply and we will move to the next step of checking to see if you can be approved. To determine your qualification, the first thing we will do is divide the monthly payment of your proposed loan by your gross monthly income. This provides your Housing-to-Income ratio. If the resulting percentage falls within a certain range, the next step is to divide your total monthly debt by your gross monthly income. This provides your Debt-to-Income ratio. Again, if the ratio falls within p
