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What is the difference between prequalification and a pre-approval?

April 26, 2017pre-approval prequalification

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What is the difference between prequalification and a pre-approval?

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A mortgage loan prequalification is 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. Therefore, a prequalification is an “around” estimate of the maximum mortgage amount for which you may qualify. There is no cost or commitment on behalf of either party for a prequalification analysis.