Friday, May 24, 2013

The Difference Between a Loan Pre-Qualification and Loan Pre-Approval?


What is the difference between a pre-qualification and a pre-approval? Learn from John who has been in the mortgage business for over a decade.

A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you.

Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets, and debts. Once you are approved, the lender will give you a letter of commitment, stating how much money her bank is willing to loan you for a home purchase. With a pre-approval in hand you can start your shopping - real estate agents and sellers will take you much more seriously when they see you have your mortgage funding in place.

David Demangos
858.232.8410
I go to Extremes to fulfill your Real Estate dreams!

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