What is the difference between a prequalification analysis and a pre-approval application?
A prequalification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and does not incorporate information obtained from a credit report. There is no cost or commitment on behalf of either party for a prequalification analysis.A mortgage loan pre-approval typically results in a written loan decision following a complete mortgage application. AFS charges a nominal application fee for a pre-approval. You can apply for a pre-approval mortgage prior to signing a purchase agreement for a home. A pre-approval can also add to your negotiating strength when you are ready to make an offer on a home.
A prequalification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. The end product for a prequalification analysis will be a “ballpark” estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either party for a prequalification analysis.
