Financial FAQ

Purchasing a Home

What is the difference between a prequalification and a preapproval?

They are quite different.

What's the difference between being prequalified and preapproved?

Prequalification is an unverified estimate of what the lender thinks you can qualify for, many times after they have run a quick credit report. Preapproval is a result of submitted documentation from the client such as, paystubs, bank statements and tax returns in addition to reviewing the credit report.