Prequalification vs Preapproval
Sometimes there is confusion between being pre-qualified for a home loan vs. pre-approved. There is quite a difference.
When you obtain a pre-qualification letter from your home loan provider, that letter simply states that based on your verbal statement that you make “x” amount of money each year and your expenses are”y” each year. With a pre-qualification, your lender has not verified your income, assets, debts, expenses, and credit score or history.
A pre-approval letter is issued by your home loan provider after you have submitted your personal documentation that typically includes the following:
· 2 Years tax returns
· 2 months of pay stubs
· 2 months of bank statements
· Credit report
You should ask your home loan provider what else is required to be fully approved by your lender for a home loan once you have obtained your pre-approval letter. Lenders vary as to the quality of the pre-approval letter and some lenders require additional underwriting conditions.
Home Advantage Realty LLC AKA HomeAdvantageBenefits.com is not licensed as a Broker/Lender and does not conduct mortgage brokerage or lending activities with consumers in the United States or Canada.
You are not required to purchase any service or product recommended by Home Advantage Realty LLC AKA HomeAdvantageBenefits.com or from any entity or person we may recommend.