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Is pre-qualified and pre-approved the same thing?

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August 22 2013 - US
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Answers (5)

"Pre-Appoved"

This means your Mortgage Loan Officer has your loan cleared thru underwriting and awaiting the final terms.

Listing agents if well seasoned can tell the difference and pass on your offer in a multiple offer situation because of this. 

You can also offer a quick close with a Pre-Approval sometimes as fast as 10 days "check with your lender" which also can make you much more attractive to a seller whom has multiple offers in front of them.
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August 23 2013
No. Pre-qualified takes about 15 minutes for a lender to calculate. It is just a ratio between debt to income. A full Pre-approval can take a few days to do. They run your credit, check employment history, verify income and usually talk to the underwriters to get an approval or Pre-commitment that they will lend you a certain amount. A Pre-approval typically makes your offer on a home stronger than a Pre-qual.
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August 23 2013
They are often used as the same thing in real estate talk. If someone looked to the fine detail answer, like from Dawg, then there is a difference. But most people use the two terms interchangeably as meaning a pre-qualification.


tim
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August 23 2013

When you are ready to make an offer on a home you must have your loan ready and offer up a "pre-approval" letter stating from a competent lender your credit has been review along with your income statements, tax records and other pertinent data and the lender is "pre-approving" you for the loan. The next steps are finding the property, producing escrow instructions, satisfactory preliminary title report and appraisal. A smart lender and watchful agent will suggest the letter state your credit score if it is favorable.

Pre-qualification is a simplified approach to getting your loan ready. You aren't really ready--you are just thinking about it. Start today to get your loan really ready--you never now what that just right home will appear. 

Be wary of a lender who wants to approve you over the phone. Those days are gone! Thankfully.

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August 22 2013
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No, they are not the same.   Pre-approved has more rigor and is more accepted when searching for a home.
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August 22 2013
 
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