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Pre-Qualified vs. Pre-Approved

When you are pre-qualified for a loan, you provide information regarding your income, assets and liabilities verbally to the lender. With your consent, a credit report may be obtained. A review of this unverified info (and credit report, if obtained) is made to determine if the info fits within the parameters of any of our loan programs.

A Pre-Qualification Letter is prepared indicating a maximum purchase price you are likely to be approved for upon satisfactory review of all required and verified documentation and appraisal on the subject property by our Underwriting Department. A Pre-Qualification letter does not constitute a loan approval or commitment to rate, fees or term.

When you are pre-approved for a mortgage loan, a formal loan inquiry is completed and documentation to support your income, assets and liabilities is provided either by you or obtained from an outside source. A credit report is obtained. This documentation along with information contained in your loan inquiry is verified and a thorough review is made to ensure its acceptability and completeness. Upon satisfactory completion of the review, a Pre-Approval Letter is issued indicating the amount for which you are approved subject to any outstanding conditions. A Pre-Approval Letter carries much more weight than a Pre-Qualification Letter.