Confusing Pre-Approval or Pre-Qualification With Commitment - TopicsExpress

Confusing Pre-Approval or Pre-Qualification With Commitment When you’re pre-qualified, the lender is simply giving you an estimate about how much you can borrow based on information you’ve provided. When you’re pre-approved, the lender has verified everything you’ve provided and is offering to lend you up to a given amount at current interest rates—under certain conditions. It’s much better to be pre-approved when shopping for a home, but it’s still not a guarantee: the lender’s final clearance and a loan commitment are subject to an appraisal satisfactory to the lender, a good title, a last-minute credit check and other verifications.

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