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

The difference between a pre –qualification and pre-approval is the documentation provided to the lender.  A pre-qualification, simply means, the information provided from a borrower has not been verified.  Meaning, the basic income, asset, and debts have only been discussed verbally and the loan terms are an estimation based off this information.

A pre-approval requires a completed loan application, plus a full review of credit, income, assets, and liabilities.  Once a pre-approval is completed the borrower knows exactly home much of a home they qualify to buy.  The lender is now able to provide the borrower with a pre-approval letter, confirming that the borrower has been pre-approved and is ready to make an offer on a home.  Most realtors, will want to verify you have obtained a pre-approval before making an offer on a home.

Obtaining a pre-approval letter will give you the information you need to make a smart financial decision. Plus, give you the confidence to move forward in purchasing a new home.

  7 comments for “What is the difference between a pre-qualification and a pre-approval?

  1. May 6, 2014 at 2:56 pm

    Please check and see if I qualify for a loan approval and how much I can qualify for.

    • May 7, 2014 at 7:32 am

      Dewayne, why don’t you give us a call today at your convenience. We will have to ask a few questions to determine the amount you could be pre-approved for. 888-844-9851

  2. Eduardo Paler Galves
    May 6, 2014 at 4:17 pm

    I now have been approved for disability plus my Social Security which I could pay more then before for a home. I found one in Billings,MT. for 68,000 this is where I would love to live until the end of my time.

  3. tom larsen
    May 7, 2014 at 10:16 pm

    What states do you preapprove for? Or is it good for all?

  4. john pelfrey
    May 10, 2014 at 5:33 pm

    andIf you guys are curious about how these guys do business, I’ll tell you. I don’t work for or personally know anyone who works there. This is just my current exp. with these people. My name is John,i live in Michigan. I’m married with two children.
    I had some credit issues and was working hard to fix them. When i thought i was in good shape,i contacted these folks. They guided me on a few things that i needed tofix, and before i knew it, i made an offer on an awesome house that i prequalified for. A commitment letter was sent and i am now watching my home be built. I was nervous over a few things but Jeff assured me i was in good shape so we moved forward. I move in to my new house mid July. Allot of other companies gave me a run around or just ran away but not MMS. Good luck to all of you. If you go with them, you’ve made a good choice

  5. alvin young
    May 31, 2014 at 8:03 pm

    I need ahome iseeone I would like to buy but my home is in bad sharp and it up for sell

Leave a Reply