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What is the difference between a pre-qualification and pre-approval letter?

My lender stated that they are providing a pre-qualification only due to new rules they have to follow. Will my offer for a property be looked at any differently since I can't provide a letter of pre-approval upfront? by annmarie405 from Knoxville, Illinois. Oct 7th 2015 Reply


Scott Weinstein (Mymortgageguyscott)
#88 ranked lender in Illinois - 37 contributions

Technically, most pre-approvals as they were called before the new rules went into effect WERE pre-qualifications. A loan originator would take your information, run credit, MAYBE review tax returns, pay stubs, etc, and run automated underwriting. The only way to get a pre-approval today is to actually have your file reviewed and approved by an actual loan underwriter, and get it approved subject to an acceptable property and appraisal. In short, the same level of work is being done to qualify you with today's pre-qualification as was done in most cases with the former pre-approval. It's up to you and your lender to explain this to your realtor so that he/she can present that information to the seller.

Oct 7th 2015
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Patty Harrison (PattyHarrison)
#94 ranked lender in Illinois - 64 contributions

Hi Anna Marie:I agree with Scott, your loan offer should not be looked at any differently as long as your loan officer explains to your Realtor that your information has been reviewed. Good luck on your offer.Patty HarrisonSmart Mortgage 630-854-3459www.smartmortgageinc.com

Oct 7th 2015
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