Difference in a Pre-Qualification and Pre-Approval for a Mortgage

Obtaining a mortgage can be a 2-Step operation.  First, you can have a Pre-Qualification done which is based on estimates which do not carry much clout OR you can proceed directly to a Pre-Approval which entails gathering of financial statements and results in a written conditional agreement being provided by the lender - which is usually valid for up to 90 days.  Having your Pre-Approval in hand before shopping for your new home makes good sense and will also strengthen your offer on your next property.

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