Pre-Qualified vs. Pre-Approved
What's the Difference?
Are you preparing to get a new home? Chances are high that you may come across mortgage pre-qualification or mortgage pre-approval or probably both. It is better to have an idea about these terms and find difference between both. When taking the first step towards home ownership both prequalified and pre-approved are important factors to consider. Before proceeding let’s find out the difference between both.
Pre-Qualification and Pre-Approval – Difference
Mortgage Lenders often use pre-qualification and pre-approval interchangeably, as per them these both terms are compatible with each other. On the other hand, Consumer Finance Protection Bureau states that there isn’t much difference between the pre-qualification and pre-approval but there is the difference. Here is how these both terms may differ.
While buying a house, you need to go through mortgage process and the first step that you need to clear is pre-qualification. After you’ve pre-qualified, pre-approval is the next step. Under pre-qualification stage, you provide your financial information to the lender including credit score, assets and overall income. After collecting all the information, the lender reviews it and provides you the estimate of what you qualify for.
Remember, to qualify for a mortgage, you always must provide documentation of your financial history – it often can be self-reported. Mortgage pre-approval is somewhat akin but normally it requires documentation and verification of your debts, assets and income. Also, it often requires credit check.
Unlike pre-approval, pre-qualification is simple & quite informal process that requires no cost, no documentation. Also, the interest rate is not specified whereas pre-approval is considered as a formal process that requires cost and detailed documentation. After pre-approval, you can get the loan within 23 weeks whereas under pre-qualifying, it takes around 30-45 days to close the loan.
Planning to buy a new home? We offer to pre-approve or prequalify you for mortgage. Above provided information will help you understand its importance and difference.
Are you preparing to get a new home? preapprovalmortgageloan.com provide you the best and smooth service. Unlike others, our experts make sure that you receive a one of the best mortgage loans.
We follow simple process; you just need to provide your overall financial picture, including assets, debts and income. After evaluating all the information, we will give you an idea about mortgage size.
preapprovalmortgageloan.com believes in making things easier for you, you can provide all this information over the phone or through email – our experts are always there to help you!
Under pre-qualification step, we provide you the opportunity to discuss related goals and needs. Also, our experts efficiently provide you mortgage options along with helpful recommendations suiting your financial condition.
The Bottom Line
Remember! Pre-qualified and pre-approved isn’t the same thing. Don’t assume that you will get the loan if you’ve been pre-approved. The blunder could cost you a lot. So before going to the bank, you need to get expert advice and preapprovalmortgageloan.com offers you the best advice – we do all the homework for you!
We are cost effective; our experts strive hard to save your money and give you proper background knowledge. Remember, success comes to those who plan envision and plan it!