What is the difference between pre-qualifying and pre-approval for a mortgage?

Pre-qualifying and pre-approval for a mortgage are different steps in the process of applying for a mortgage. Pre-qualifying is the first step and is used to determine how much you can afford and what type of loan you can qualify for. During pre-qualifying, you will provide your lender with basic financial information such as income, assets, debt, and credit history. The lender will then review this information to determine what size of loan and what type of loan you qualify for. In contrast, pre-approval is a more detailed and involved process. During pre-approval, the lender will review your assets, income, debts, and credit history in more depth. The lender will then compare your financial information to the guidelines set by the mortgage lender to determine if you are able to get a loan. If you are pre-approved, you will receive a formal document stating how much you can borrow and the terms of the loan. In Kansas, getting pre-qualified is a good way to start the mortgage process and to determine what kind of home you can afford. Pre-approval is usually required before you can make an offer on a house. It gives you and the seller assurance that you are able to get a loan and will be able to close the transaction. It also helps you get more competitive interest rates.

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What is the difference between pre-qualifying and pre-approval for a mortgage?

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