difference: Why Your Pre-Approval Isn't Real
- 01/11/14 09:01 AM
The topic of a Borrower or Real Estate Agent requesting a Pre-Approval instead of a Pre-Qualification comes up quite frequently. The terms have been used so interchangeably for so many years now, so it is bound to lead to confusion. In today's market, you will most likely not be getting a true Pre-Approval letter though. Instead, a Pre-Qualification will be given to the Borrower.
Most lenders quit issuing true Pre-Approvals several years ago for a variety of reasons. One main reason for the change was to be in compliance with applicable Federal laws. RESPA laws that govern the GFE changed January 1, 2010 . When that … (9 comments)
The topic of a Borrower or Real Estate Agent requesting a Pre-Approval instead of a Pre-Qualification comes up quite frequently. The terms have been used so interchangeably for so many years now, so it is bound to lead to confusion. In today's market, you will most likely not be getting a true Pre-Approval letter though. Instead, a Pre-Qualification will be given to the Borrower. 
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