What is the difference between “Pre-Qualification” and “Pre-Approval”?

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.

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