Diff. between Pre-approval and a Pre-qualification letter?

Question

Hi guys im buying a house and i already found one, my agent told me to get a pre-approval letter or pre-qual letter so we can start off to get a house.. i was approved to get a mortgage loan and my Loan Officer send me this bunch of papers need to sign in and return it back.. but im confused do i really need to sign in those papers before i start to look for a house??? how long does it take to process this stuff??? i really have no idea can somebody help me, explain it to me briefly... THANKS!!

Answer 1

When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay.

http://best-loans.awardspace.com/homeloa...

http://mortgages-finance.awardspace.com/

With this information you and your lender will be able to determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.

Answer 2

Pre-Qualify just means they are taking your word about your reported salary and current address and various other things.

Pre-Approve dmeans they ran a credit check and verified all that stuff.

Pre-Qualify is not good when making an offer on a house, pre-approved is, because it means the bank has already decided to lend you the money. Pre-Qualify just means that they MAY lend you the money, after they verify and approve you.