Rodney, this is valuable information that Realtors® need to know when working with their home buyers. I like that you explained what the difference is and why.
Thanks for sharing. These terms are used interchangeably but both have different meanings. Thanks for clarifying. You bring up a good point about the GFE changes in 2010. So even though a borrower provides supporting documentation to lender when getting pre-approved, that "pre-approval" letter is actually a pre-qualification letter.
Rodney, it's really a tough job for lender now-a-days - and you are right, pre-qual letter is always mistaken for pre-approval letter.
Preapprovals were never worth the paper they were written on.
Glad to see them die.