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Mortgage Center Mortgage 101 How is pre-qualification different from pre-approval?
| How is pre-qualification different from pre-approval? |
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Any reputable Mortgage Banker will "pre-qualify" you for a mortgage before you start house hunting. This process includes analyzing your income, assets, and present debt to estimate what you may be able to afford on a house purchase. Real estate brokers can also calculate the same sort of informal estimate for you. Obtaining mortgage "pre-approval" is another thing entirely. It means that you have in hand a lender's written commitment to put together a loan for you (subject to verification of income and employment). Pre-approval makes you a strong buyer, welcomed by sellers. With most other purchases, sellers must tie the house up on a contract while waiting to see if the would-be buyer can really obtain financing.
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