Mortgage Basics: The Difference Between Pre-qualified
and Pre-approved
As you go about the process of looking to buy a home, you
also will need to take the time to understand the home mortgage
and the home mortgage process. In this regard, it will be
necessary for you to understand some of the home mortgage
basics. Two common terms that you will be confronted with
when it comes to a home mortgage and the home mortgage application
and approval process are pre-qualified and pre-approved.
Through this article you are provided with some of the
home mortgage basics, specifically, about the difference
between pre-qualified and pre-approved for a home mortgage
loan. When you have considered this information you will
be in a position to begin to apply for the home mortgage
you need and desire.
An Overview of Pre-Qualified
When it comes to a home mortgage loan, pre-qualified means
that you have undergone all of the basic screening requirements
associated with a home mortgage loan. While you have not
obtained approval for a specific home mortgage loan or for
a home mortgage loan in a particular amount, you have pre-qualified
to the extent that a lending institution has indicated that
it will finance your purchase of a home within a fairly
broadly defined price range.
You will still need to be approved for a specific home
mortgage loan when you have pre-qualified generally for
a home mortgage loan. In other words, you will need to find
the home you want to purchase after which you will complete
the home mortgage application and home mortgage approval
process.
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