Asked anonymously

What are the differences between mortgage prequalification, preapproval and final loan approval?

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  1

January 27, 2016

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.

$commenter.renderDisplayableName() | 10.25.20 @ 07:38