Mortgage pre-qualification vs. pre-approval: What's the difference? - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

Turns out that pre-qualification and pre-approval are different

It also helped gave me peace of mind that I can afford the home I'm envisioning for myself. I have a budget in mind, and after getting pre-qualified, I know the figures I've been thinking are on track with what I'll likely be approved to borrow. Getting a pre-qualification gave me the number I needed, without having a hard credit inquiry show up on my credit report.

In my stage of the process, it wouldn't be — I don't want even a small dent on my credit score more than once, especially since I know I won't use the pre-approval before it expires. While this will be right for me in the future, it's not what I need now.In my search to get pre-qualified, I realized many banks and lenders use this term interchangeably.

The second reason is simpler: It's about marketing. "They're used interchangeably because it's difficult to explain the difference. Maybe even loan officers don't necessarily know what that term is. It's largely a marketing tactic," Taylor says.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines