Answers (2) |
sumesh kumar
|
May 1, 2006,12:43 pm
Prequalification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is usually free.
<br>Preapproval takes prequalification one step further. The lender will contact your employer, your bank and others to verify your income, assets, debts and credit history, and then issue
<br>you a letter stating that your mortgage is approved for a certain amount within a certain time. You may be charged a small fee to cover the cost of your credit reports and your application,often refunded at closing. |
|
|
| |
|
| |
|
sumesh kumar
|
May 2, 2006,1:20 pm
| They mean about the same thing. What you are doing is getting APPROVED for a loan first. This tells the seller that you are QUALIFIED to buy his or her product, house, car, etc. |
|
|
| |
|
| |
|
|
