Pre-qualifying is a process whereby a mortgage professional informally determines the maximum amount an individual is eligible to borrow.
The mortgage advisor typically:
A pre-qualification is different from a pre-approval.
A pre-qualification is quicker and the lender itself does not review the borrower’s application.
With a pre-approval, the lender provides a rate guarantee on the assumption that the borrower meets its guidelines. The lender will often (but not always) review the application—in part or in full.
In addition, pre-approvals sometimes involve a more thorough check of the borrower’s credit and documentation (by the mortgage advisor, not the lender).
Join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.