Prequalification vs. Preapproval
Although they may be used interchangeably by some, a prequalification is not the same as a preapproval. Initially, buyers may obtain a prequalification since it can be completed by simply making a phone call to a lender. The lender will gather basic information regarding the buyer's overall debts, monthly expenses and income in order to identify an appropriate price range for a home to buy. Whereas a prequalification is a good start, a preapproval is more concrete. The lender will have the buyer complete a loan application and provide documentation such as paystubs and income tax returns. When your real estate agent submits an offer on your behalf for a property to purchase, it is accompanied by a prequalification or preapproval letter in order to verify you are a qualified buyer.
Real Estate Calculators Click on One of the Calculators for it to be displayed below:
1.) How much house can I afford
2.) Renting Vs. Buying
3.) Mortgage Amortization
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