What is the difference between “pre-qualification” and “pre-approval” and what are the benefits of each?
Pre-qualification and pre-approval are steps you can take to improve your chances of not only getting the right loan but also getting the house you’re after. Both terms are used to describe different levels of verification for the loan process, where pre-approval is a step higher than pre-qualification and pre-qualification is better than no loan qualifications at all. To be pre-qualified, you discuss your financial situation with your mortgage lender and send copies of documents pertaining to your income, assets, liabilities, equity, and credit report. When you are pre-qualified you are provided with a letter from your mortgage lender that states their opinion as to how much you can afford to pay to purchase your property. While it is likely that you may be approved for the loan, pre-qualification is not a commitment to lend. To be pre-approved, you must complete loan application documents and are then provided with a pre-approval certificate upon verification. Getting pre-approved is
