I have access to a variety of lenders that give my clients special treatment and facilitate all kinds of information to them about rates, market status, and financial advice in general.

Question: What is the difference between being pre-qualified and pre-approved?

Pre-qualified: Being pre-qualified indicates that a loan officer has collected some information about your debt, income, and assets. The loan officer then will look at your credit profile and your goals for down payment etc. to get an idea of several different loan programs which will work for you as an individual. Some calculations are performed to determine which program gives the highest loan amount/lowest payment/most closely matches your needs based on the underwriting guidelines and gives you an opinion as to your ability to qualify for a specific program. This is where the loan officer's skill and experience are invaluable to the consumer.

Pre-approved: To go to the next step, pre-approval, will require you to complete the full loan application and submit all of the appropriate documentation for review by the loan officer. You have not usually found a property at this time and any reference to property on the application is left blank. In a lender who has embraced technology, the application is submitted to electronic underwriting and the "black box" gives the loan officer immediate loan approval. Generally, the process should take no more than 24 hours from receipt to loan approval. You are approved and you just need to find a home at or below the approval amount. If there are additional documentation requirements, the loan officer should let you know at this time.