Pre-approval Guide (1) - Flipbook - Page 5
PRE-QUALIFIED VS. PRE-APPROVED
WHAT YOU SHOULD KNOW
PRE-QUALIFIED
PRE-APPROVED
A pre-qualification relies on
information stated in a mortgage
application without initially providing
supporting documents.
A pre-approval occurs when your
lender collects and thoroughly reviews
essential documents like W2s, tax
returns, pay stubs, and bank
statements to verify that the income
and assets on your application qualify
to be used for the mortgage program.
A lender reviews your credit and o ers
an estimated amount you could qualify
for, based on your stated employment,
income, and assets.
Pre-qualifications are less appealing to
sellers due to the increased risk of
financing issues after the contract is
signed.
Sellers view a pre-approval as more
reliable than a pre-qualification
because it reduces the chances of
financing issues.
