Mortgage Pre-Qualification Vs. Pre-Approval. What’s The Difference?

Mortgage Principal Balance

A mortgage prequalification is a loan officers’ best guess. So in most cases they are collecting what you tell them whether electronically or verbally and then pulling your credit and issuing a prequalification based on that. Sometimes they might ask for documents if your are self employed or just started a new job or something like that. They will collect some of those income docs. But the real problem with that is that there are a couple different ways you can look at income and your way, or our way of looking at income might not be the same was as the underwriters. So prequalification is a piece of paper that says we looked at your information on a very basic level and qualified you to do a mortgage and you can go out and shop with it. The problem is, the underwriter hasn’t looked at it and that is where preapproval comes in. So, a preapproval is when you actually take all of that documentation from your borrower.

Submit it to an underwriter from a bank and the underwriter reviews all of that and issues a conditional approval, right, before they even find a home. There is a difference there because a prequalification is just a loan officers best guess where a preapproval has been fully underwritten by an underwriter and they are actually approved. It’s usually very simple easy to access documents where we can issue a preapproval, a real approval, right away. The reason why we wanted to talk about this topic, right, is because there is a true difference and for years we’ve been throwing these terms out there and not knowing there truly was a difference. , you don’t want to go put an offer in with a a prequel, hoping, that the loan officer was right. Where when you put an offer in an underwriter pretty much guaranteed unless you’re borrower, or if you are the borrower, changes something.

Looking To Refinance Home Loan

I went on Lodex to refinance my home loan. Basically, I had gotten a letter in the mail from my existing bank raising interest rate on my home loan and I was whinging about it at a party and my friend basically told me about their website. I really enjoyed actually people bidding on my business, I mean, I’ve gone to many comparison sites before and that, and you get different offers and what have you, but once I actually got into the auction process, you could actually just go ahead with it, giving you the best deal for your loan, which I found refreshing. I’m very, very pleased with it because I’ve been with the same bank for a long time and negotiated these loans with them a lot every time, so this was was quite a substantial saving compared to what I’ve experienced previously. Pretty much between 30 and 40 best points off my existing loan, which I found was excellent. Once all the details were filled in, the next steps were very, very quick, and I was able to deal with the mortgage broker very quickly, which was a really important thing for me, because it’s very hard to make a change, you know, especially if it takes a long time to do it. I already have recommended Lodex to my friends.


Please enter your comment!
Please enter your name here