By JT Burnside
The Difference Between Being Pre-Qualified and Pre-Approved
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ny buyer or seller engaging in the real estate investment cannot miss encountering these two terms. They are common in mortgage transactions and are both main steps in the mortgage application process. They are both types of mortgage approval and refer to the steps taken by the lender to prove whether a client can afford a mortgage. The terms may sound so similar and, that’s why it is vital to know what each term means and the differences between them. On a light note, Pre-qualification is the first step and, it is where the buyer can know the amount of loan they can qualify. The second step is pre-approval which follows a conditional commitment by a lender to grant the buyer the mortgage. Pre-qualification relies on the client submitted data while the pre-approval is verified client data. Let’s get deeper into these below. MORTGAGE PRE-QUALIFICATION This process varies by different lenders. Usually, the lender requests the buyer to submit all their money income, assets, credit, and debit details. This information helps the lender to estimate the amount of money that buyer can borrow. This process can even be done online or over the phone since it’s a quick process that takes about three
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