Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for bum58

Are the quotes considered pre-approval or pre-qualified and what is the difference?

Agents ask if I have pre-approval/pre-qualified for a mortgage and state this makes the home search must less difficult.
  • January 21 2011 - Phoenix
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (9)

A note on previous comments.

No one wants to waste their time, and you shouldn't want get your hopes up, until you are fully approved.

Pre-approved does not guarantee you will receive a loan. When your file is entirely underwritten, anything might pop up that may kill the deal. Also, the property has to qualify too. That's extremely important, if you are looking at condominiums.

My company, and some others too, will fully underwrite a borrower, with property to be determined. Then, the only thing that may kill the deal, is the condition of the property in question, and it's appraisal.

Happy funding, Rudi
  • January 22 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Unfortunately pre-approval/pre-qualified tend to mean different things to different lenders.  The best case scenario is when the Realtor and the lender are comfortable working with each other and can trust each other.  I know this may sound strange to a buyer like they are in "bed" with each other but not all lenders pre anything's can be trusted. 

Open communications is the key to any Real Estate transaction actually closing these days.  If you trust your lender and know others that have used them then you are probably ok with their pre-approval.  If not, find a lender you trust.
  • January 22 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mshort
A quote is simply an estimate of figures.  You would need to complete a loan application and have your credit pulled before you can be preapproved

Thanks - Matt
  • January 22 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Pre Qualified means that based on the information you have given the loan officer they are confident they can get you a mortgage. Pre Approval means that you have been pre approved for a mortgage but may require you to provide additional informaion so that you can be fully approved for a mortgage.
  • January 22 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Pre Qualified means you may qualify for a loan.... Pre Approved means you have qualified. Buyers, Realtors, Sellers and Lenders should avoid Pre qualification letters as they are worthless and could lead to "horror stories" for all involved. HUGD's description of pre-approval describes the process and obvious benefits to everyone.
One caveat regarding the Pre Approval Letter/process is that not every buyer would be approved by every lender. There could be unique circumstances that exist with loan/buyer parameters, which is why an applicant should not assume that once they have a Pre approval letter from a lender that they can use any lender.
  • January 22 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sharon Lewis
Love this question, thank you for posting it.....we have a new offer to purchase contract in North Carolina where there is a due diligence fee now. We are trying to encourage our buyers to get pre approved, meaning credit checks have been done and they are pretty much good to go as opposed to clients who have simply told (and sometimes exaggerated their incomes) and have been issued a preapproval letter but when the offer is 'accepted' and the client tries to get approved, they cant in some cases if they have exaggerated so all that work, goes down the drain. Not only has that buyer taken the house off the market for a long time but has also wasted everyones time....and by that point the seller has lost potential sales, realtos have out in hours and hours and the buyer has spent money on home inspections etc...Get pre approved....
  • January 22 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Pre-Qualified:
When a buyer meets with a lender and DISCUSSES their income, expenses, assets and liabilities. The lender may wish to see the credit report. The lender will then issue a pre-qualification amount that the borrower may qualify for based on the information provided. It is "assumed" that the information given is true. 


Pre-Approved:
When a buyer meets with a lender and PROVIDES EVIDENCE of income, expenses, assets, liabilities, sourced closing funds and credit. All information is verified by the lender and usually run through an automated underwriting system to get a pre-approval. As a result, much of the paperwork for this buyer's loan has been completed. The borrower is then provided with a pre-approval letter from the lender. A pre-approval carries much more weight when making an offer than a pre-qualification.
  • January 22 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It's true, because it directly relates to your buying power. If you're not pre-approved to buy at a certain price and end up getting yourself in a contract, then you've just made things, "difficult". Quotes are not by any means considered pre-approval or pre-qualified. They are merely an idea of what mortgage rate they can provide.

A lender must pull your credit report and verify information on a 1003 loan application to give you a pre-approval. Also known as a CLR or LSR. You can contact us for further questions. Thanks.
  • January 21 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I'm not sure what your question means. To what "quotes" are you asking about?
  • January 21 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.