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Pre-qualified and pre-approved sound the same, but mean very different things for homebuyers—and carry very different weights with home sellers.
bortonia/iStock) Mortgage Pre-Qualification vs. Pre-Approval: What’s the Difference? Mar 20, 2022 Share When buying a home, cash is king, but most folks don’t have hundreds of thousands...
Pre-qualified and pre-approved can have different meanings depending on the type of loan. Learn more.
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QuickTakes: ; What's the difference between pre-qualified and pre-approved? ; Do pre-qualification and pre-approval mean I'm approved for auto financing? ; Do pre-qualifcation or pre-approval affect credit scores? ; How do I use my auto financing offer?
Related topics ; What is Mortgage APR? ; How much house can I afford? ; Mortgage process
Pre-qualification and pre-approval are two terms you may hear used interchangeably when shopping for a mortgage, but they are actually two optional steps you can take to start the loan approval process. A mortgage pre-qualification is usually a much shorter process that requires you to honestly report your own financial information, while a mortgage pre-approval typically requires you to submit more documentation like W-2s to verify your financials — making it a lengthier process. Neither pre-qualification nor pre-approval will guarantee you ...
Understand the differences between what prequalified means and how you get preapproved. Learn how these offers impact your credit score and how to opt-out.
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