Trulia Fort…, Other/Just Looking in Fort Lauderdale, FL

What’s the difference between being pre-qualified and pre-approved for a mortgage?

Asked by Trulia Fort Lauderdale, Fort Lauderdale, FL Tue Oct 30, 2012

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Julie Rosent…, Agent, Jupiter, FL
Tue Oct 30, 2012
Hi, that is a great question! The most basic difference between being pre-qualified and pre-approved for a mortgage is that the lender has verified the data in a pre-approval for your loan at a certain amount. But in a pre-qualification, the lender is saying something like " based on what you've told the lender if forthcoming data can be verified, the lender believes they will approve your loan at a certain amount.". When you make an offer on a home and include a verified loan pre-approval, it usually carries more strength in the minds of most sellers than a pre-qualification, because there is more certainty that your loan will go through. I am not a mortgage pro, but I would be glad to recommend some good ones. Thanks! Julie Rosenthal, Broker / Property Brokers International . Mobile: (561)827-6789 Email: julier6789@gmail.com
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Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Tue Oct 30, 2012
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Both have been called completely worthless.

But generally, before there's actually an executed sales contract, a complete loan disclosure pkg sent and returned and the initial loan processing has been completed, loan submitted to U/W and an actual Loan Commitment obtained, Pre-Quals and Pre-Approvals are pretty much all you can get up front in most cases.


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Myke Atwater, Agent, Santa Rosa Beach, FL
Tue Oct 30, 2012
The prequalify is a much easier process where a decision is made in about a 20 minute phone call if your basic financial information qualifies you for a mortgage and for how much.

A preapproval is a much more involved review of your financial ability to purchase a property at a given price. This is what most sellers are looking for when you are submitting an offer to purchase, so that they know that you are able to carry out the terms of the contract.

Myke Triebold, GRI, LMC, SFR, ABR
850-305-6256
MykeSaysSold@aol.com
http://www.DestinHomeRealty.com
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