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FYI
What's
The Difference Between Pre-Qualifying And Pre-Approval?
Pre-Qualification
A pre-qualification is issued by a loan officer and is based upon the information contained in your loan application. The loan officer examines your employment, income, credit history, and indebtedness and determines the dollar value of a loan for which you could be approved. However, the loan officer does not make final loan approval so the pre-qualification is not a commitment to lend.
The pre-qualification letter issued by the loan officer is used when making an offer to purchase property. It give the seller some level of assurance that you can obtain the loan you have requested and thus be able to purchase their property.
Pre-Approval
Pre-approval is the next step and holds more weight since it involves verifying the information on your loan application. This decision is issued by an underwriter who does have authority to approve your loan.
Having a pre-approval gives you a greater advantage when shopping for a home since it has greater credibility. It will give you an advantage over a competitive buyer who only has a pre-approval. This means you must make loan application well in advance of the home search process.
While a pre-approval may still have "conditions" attached to it, if you meet those conditions in a timely fashion, then your loan is as good as done.
Final-Approval
Final approval is issued by the underwriter when all of the "conditions" have been fully met. This allows the closing package to be prepared and sent to the settlement company. This typically occurs within a few days of settlement, and in some cases only hours prior to settlement.
What Next?
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