What is the difference between prequalification and pre-approval?

Prequalification usually gives an initial estimate based on financial information you provide. Pre-approval generally involves a more detailed review, which may include income documents and a credit report. Terminology, required documents and the depth of review vary by lender.

Fundsitive LLC can help you prepare for the selected lender’s review. Neither step guarantees a loan or a rate. Final approval depends on underwriting, acceptable property and appraisal results, and satisfaction of any conditions. Before making an offer, confirm the letter’s conditions, expiration and any credit inquiry involved.