What is the difference between pre aproval and pre qualify in home loan?

I keep seeing people talking about being pre approved for a home loan or being pre qualified, one being quicker and easier than the other. What is the difference/benifit of the two?

By | 2013-08-24T23:21:17+00:00 August 24th, 2013|Mortgages Home Loans Interest Rate|6 Comments

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6 Comments

  1. chatsplas@sbcglobal.net August 25, 2013 at 1:11 AM - Reply

    A piece of paper and they’re both NOT of great value. Pre-approval means you should get approved for the loan, pre-qualified means a quick look at your finances says you should be able to get pre-approved or even approved for a mortgage. Pre-qualified means your income is sufficient, but is just a quick look at your loan to value ratios. You may pay an application fee for pre-approval, but usually not for pre-qualification.

  2. North Country Real Estate August 25, 2013 at 1:07 AM - Reply

    Pre-approved is generally termed when the lender has received more information and started the process for the loan. Some people mistake many of the terms used and add to the confusion of what everyone is talking about. Pre-qualified is generally “will your income support the payment” and little else. It is important to remember that if you want to buy, financing should be the first step, offers from unapproved buyers will not be accepted. Find a competent agent and ask them to represent you. They will act in your best interest and make sure your ducks are in a row. If you need payment info, feel free to use the tools on my site http://www.northcountryre.com.

    Good Luck

  3. Madison August 25, 2013 at 12:56 AM - Reply

    Preapproval is a conditional approval usually received after you have applied for a home loan. A final approval is given once a underwriter has reviewed the loan.

    A Prequalify is given to people that have passed a general screening process based on the lenders guidlines. A prequal doesn’t mean you are preapproved, preapproval will usually be given once you apply and meet the the lenders qualifications.

    The process for either or will be the same. If you have a preapproval from your current mortgage provider then that means they did a more in depth research to prequal and the process maybe quicker with them.

  4. Klueril August 25, 2013 at 12:37 AM - Reply

    dunno

  5. domado16 August 25, 2013 at 12:18 AM - Reply

    this is my answer

  6. nite_angelica August 24, 2013 at 11:51 PM - Reply

    There is no difference. They say that and then you STILL have to go through the approval process with the loan department.

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