Difference between the pre qualified and the pre approved mortgage

Many people may not know the clear difference between the pre qualified and the pre approved mortgage. It is a very complex statement and it is also highly difficult to understand the great difference between two such terms in the mortgage. To understand the difference between the pre qualified and the pre approved mortgage read the below said paragraph which will give you a very brief explanation about these two terms. Make use of it and try to apply it in the mortgage process.

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Pre qualified mortgage process

The pre qualified stage is the initial stage in the mortgage process and it is said to be the first step in the mortgage process. It is highly simple to understand this term. When a person approaches a bank or the lender with all the financial picture of the person which may include the debt, income, and also all the assets, the banker or the lender will look upon all the information regarding the financial picture and then they may give you an idea for the performing the mortgage process. This is merely called as the pre – qualification and it is highly performed in the starting stage of the mortgage process. It is highly done to qualify the position of the person’s financial picture and it can be done in the internet also. Even a phone call is more than enough for the person to pass out this pre qualification section. There is no need of spending any money in this process and it is costless. This process also does not include the credit report analysis and other such factors. This is the great initial step and this helps to discuss all the goals and the needs regarding the mortgage. This is the point where the lender explains all the types of mortgage options and the various uses of the mortgages. In this stage the lender will also recommend the situation which can be adopted by the person and the lender will say what type of mortgage can be chosen. This is the process which is done in the pre – qualified step and it is highly different from the pre approved step.

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Pre approved mortgage process

The next step in the mortgage which is been followed by the people is this pre – approved process. Here in this step the people will involve totally in order to make good decisions and the people will complete all the official mortgage application. After this the person will supply all the needed documents to the lender and it will lead to perform an extensive check on the financial background of the individual. After this step the lender will easily say the specific amount which is given for the mortgage process. This will lead to have a very clear and better idea about all the interest rates which will be charged on the obtained loan. This is the pre approved stage in the mortgage and it is also highly different from the pre qualified process in the mortgage

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The entire above said concepts are the brief facts of the prequalified and the pre approved process in the mortgage and now people may be clear with the great two different terms.