Prequalification vs. Preapproval
Do you know the difference between Prequalification and PreApproval? Both of these terms are thrown around quite a lot in the mortgage industry, but understanding what differentiates the two is extremely important.
Pre-qualification is a very basic analysis of income, assets and credit. It can typically be done over the phone in a matter of minutes.
Pre-approval on the other hand takes the basic background check one step further.
Understand why prequalification just isn't good enough before you write an offer on a home only to find that that the lender did not verify all of the up-front documentation that should have been asked for prior to making an offer.