A pre-qualification means your lender has reviewed the financial information you provided and deems you qualified for a mortgage. This qualification is typically done based on what a borrower tells the lender and usually doesn’t involve hard documents. A Pre-approval typically involves the review of hard documents, running the borrower’s credit, completing a loan application, and allows the lender to provide a loan amount and interest rate information. Not all sellers and their listing agents will require a pre-approval letter when analyzing an offer. However, I recommend to all my borrower’s to have a fully underwritten pre-approval before they even begin their property search. Fully underwritten means the borrower has been vetted completely by the lender and when a purchase agreement is received, only the property will require vetting. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
