Often times, these two terms are used interchangeably. However at Network Funding, we differentiate between the two.
Pre-Qualification means you’ve communicated with one of our Loan Officers and they have reviewed your application and calculated the type and amount of financing you are eligible to receive.
Pre-Approval on the other hand, means that your application has been processed and underwritten and that you’ve received a credit approval. All that is left at this point is to find a property and get it under contract.
Most people when they refer to “Pre-Approval” actually mean “Pre-Qualified”. If you have any questions as to whether or not you need one or the other, simply ask your Loan Officer.