What’s the difference between being prequalified and preapproved?
Prequalification and preapproval are two forms of mortgage approvals that, at their most fundamental level, refer to the processes a lender takes to confirm that a client can afford a mortgage. A pre-qualification is a quick and simple approach to determining the maximum amount you might be able to borrow for a mortgage. You can acquire your estimated price range online in a matter of minutes by providing your lender with some basic financial data, such as your projected household income and debt.. A mortgage preapproval, on the other hand, is a more formal procedure that calls for the lender to confirm your financial data and credit history. Paystubs, tax returns, and even your Social Security card may be needed as pre-approval documentation. This means that a preapproval is a…