What are the differences between mortgage prequalification, preapproval and final loan approval?
Hi There -
Generally speaking, a pre-qualification is issued when a lender has analyzed your mortgage loan application and a credit report. A pre-approval (stronger) is a pre-qualification plus a lender has also analyzed your income & asset documentation. Lastly, a loan approval (strongest), also known as a commitment letter or loan commitment, is when the underwriter at a lender has approved your loan. | 01.27.16 @ 22:23