Robert McLister·General·October 2, 2010Pre-Qualify / Pre-Approve Pre-qualifying is a process whereby a mortgage professional informally determines the maximum amount an individual is eligible to borrow. The mortgage advisor typically: Reviews the borrower’s application and credit Calculates the debt ratios Confirms the borrower meets the chosen lender’s guidelines Provides an informal list of financing conditions Provides a rate hold for 90-180 days (this is optional) 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). Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.