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Thursday, August 24, 2017

The Difference Between Pre-Approval and Pre-Qualification

Today, I’ll be covering a common question I often receive, which is: What is the difference between pre-qualification and pre-approval? Let’s find out.

Today, I wanted to take a moment to talk about a common question I receive. 

People frequently ask me what the difference is between pre-qualification and pre-approval. 

Actually, these two things are fairly different. A pre-qualification, typically, is done online or over the phone and uses unverified information.

A pre-qualification simply doesn’t hold as much weight.  

A pre-approval, however, is verified using documents. This is what we’ll typically run here at Velocity Lending. 

"Pre-approval truly makes a world of difference."

When undergoing the process of a pre-approval, we will look at things like a person’s pay stubs, whether the person is self-employed, as well as their assets and credit report. 

After running your loan through underwriting, we will then produce your pre-approval letter. 

In our competitive northern Colorado market, having a pre-approval in hand will be the difference between striking a deal and having your offer passed over. Pre-approval truly makes a world of difference. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.