Reply
Contributor
Posts: 82
Registered: ‎12-09-2010
0

Pre-Qual vs Pre-approved

Hello all! My wife and I are in the process of buying a home. I have not met with the lender in person but we have spoke over the phone a few times. My question is, he has already reviewd our credit / credit scores and gave us an amount we can qualify for. He has issued us a pre-qualification letter and not a pre-approval letter. I'm confused becasue we have been submitting offers to various houses (hopefully we will get one accepted soon) and our agent has a copy of our pre-qual letter. I always thought it was better to have a pre approval? I don;t want to finally find a house and then something comes up and we can't get the loan. Should I have any worries?  

Proud home owner
Lender Pull 03/28/2011 EQ:708 TU:698 EXP:709

Established Contributor
Posts: 951
Registered: ‎05-27-2009
0

Re: Pre-Qual vs Pre-approved

You may have the two confused.

 

Pre-qualification occurs when the lender receives your basic information (debt, income) and usually does not include an actual review of your credit history. The lender will provide you with an amount that you would qualify for using the basic information you provide and without influence from your credit.

 

Pre-approval occurs when you submit the actual mortgage application, the lender pulls your credit to evaluate your financial risk and determines the actual approval amount based on your complete picture.

 

Hopefully this helps.


Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


Take the FICO Fitness Challenge
Regular Contributor
Posts: 108
Registered: ‎01-28-2010
0

Re: Pre-Qual vs Pre-approved

 


cdtotten wrote:

You may have the two confused.

 

Pre-qualification occurs when the lender receives your basic information (debt, income) and usually does not include an actual review of your credit history. The lender will provide you with an amount that you would qualify for using the basic information you provide and without influence from your credit.

 

Pre-approval occurs when you submit the actual mortgage application, the lender pulls your credit to evaluate your financial risk and determines the actual approval amount based on your complete picture.

 

Hopefully this helps.


+1

 

TU: 752, EQ: 761, EX: 745
Contributor
Posts: 82
Registered: ‎12-09-2010
0

Re: Pre-Qual vs Pre-approved

He has a;ready pulled our credit and reviewed line by line but the letter he issued to us says "pre-qualification"  That's what confused me becasue I thought pre qual was just like you said basic info such as income and debt with out reviewing credit.

Proud home owner
Lender Pull 03/28/2011 EQ:708 TU:698 EXP:709

Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
0

Re: Pre-Qual vs Pre-approved

Unless you have provided all the hard copy documents it is still a  pre-qual.  A pre-qual usually involves a quick run down and answer.  A pre-approvalis one step further with income documents verified, VOE filled out, bank statements and w2's supplied, etc. 

Contributor
Posts: 82
Registered: ‎12-09-2010
0

Re: Pre-Qual vs Pre-approved

Ok. thanks! :smileyhappy:

Proud home owner
Lender Pull 03/28/2011 EQ:708 TU:698 EXP:709

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.