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Home Ownership Made Easy
603 hits
| Nov 30, 2004 4:29 pm |
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Pre-Qualification vs Pre-Approval |
Angelo Cerase
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Hi Linda and everyone,
To the best of my knowledge, if a person is interested in buying a home, he/she should get pre-approval of a mortgage, rather than just being pre-qualified.
(Please correct me if I am confusing the two)
To the best of my knowledge, pre-qualification is a short little form where the lender can say "Yeah, you will most likely be approved with this info".
Whereas pre-approval involves everything from the lender checking your credit rating to 'holding' an interest rate for 90 or 120 days. (Are the rules in the US similar to those?)
With a pre-approval you know for sure that you will get a mortgage for a specific interest rate when the time comes to buy your home. With pre-qualification, the lender may find some negative thing on your credit rating, or the interest rates may have increased by that time, etc etc.
However, they do sound the same and I'm sure there are a lot of lenders that just do the pre-qualification since it's a lot easier.
Angelo
> Linda Scott wrote:
> There can be stress free home buying, the moving should be the hard part. Take Advantage of Loan Pre-Qualification
Private Reply to Angelo Cerase (new win) |
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