Pre-Qualification Versus Pre-Approval

Montreal Mortgage Specialist

Many realtors ask their buyers to be pre-qualified before working with them. Many buyers, however, get lulled into the mistaken notion that if a lender or bank has pre-qualified them for a mortgage, this means they have been pre-approved for a home loan. Unfortunately, there is a world of difference between these two terms.

Pre-Qualification:

Getting pre-qualified is the initial step in the mortgage process, and is generally fairly simple. You will supply a bank or lender with your overall financial picture and after evaluating this information, the bank gives you an idea of the mortgage amount for which you qualify. Mortgage pre-qualification does not include an analysis of your credit report or an in-depth look at the documents provided.

Pre-Approval:

Getting pre-approved is the next step, and tends to be much more involved. You will be asked to complete an official mortgage application and then supply the lender with…

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