Pre-Approval vs. Pre Qualification

[Anonymous]

I've always read that pre-approved and pre-qualified are two different things, but I was told today by a lender that you can call it either now because it all has to go through a computer check.  The old pre-qualified was when a mortgage broker just looked at your stats and said "yeah, looks good for...", and she said they certainly don't do that anymore.

So, they pulled my credit and gave me a letter that says "Preliminary Approval".  BUT, they don't want my income verification, etc. until I find a house.  Which is odd, because another lender required that I furnish all of those documents now, and a week later, after pulling my credit, gave me a letter that says, "Pre Qualified".  

I'm a little confused.  Is this normal? 

[BrianB_The_Loan_Professor]

You dont hear pre-qual anymore

I think that was a good explanation of why the change took place

all loans now go through automated

that wasnt the case - a few years ago many LO;s didnt even know how to do an automated approval

B

[Anonymous]

Thanks for the response Brian. :-)

Any idea why one lender wanted my documents now, and the other wants them later?  Both pulled credit.

[BrianB_The_Loan_Professor]

One is being more thorough

If you are going to take time to find a home your paperwork will need to be updated anyways

As long as everything that you have said on your app is accurate I wouldnt worry about it

Good Luck

B

[MonkeyMan17]

Well how about this.

1) Loan Broker sends me letter stating I am pre-approved up to 350K subject to sales contract, appraisal, termite inspection, final underwriting

2) Direct Lender (Amerisave) sends me letter stating I am pre-qualified for 250K (that was what I applied for) and I have passed automatic underwriting, they say they don't issue pre-approval letters for va loans but if anyone has a question to just call lender

3)SunTrust mortgage officer sends me email stating I have passed automatic underwriting and loan is in final underwriting for again for 250K

So I am also in the dark as to pre-qualify vs pre-approval