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

Pre-qualifying and pre-approval for a mortgage are two different steps of the mortgage process. Pre-qualifying for a mortgage involves talking to a lender about your financial situation and getting a rough estimate of what size of loan you may qualify for. It is useful for giving you an idea of what size mortgage you can comfortably afford. Pre-approval for a mortgage is more involved and is a more formal process. This process includes submitting an application and having the lender review your financial information such as credit score, debt-to-income ratio, and assets. Once the lender reviews your financial documents, they will provide a written document that states how much money you qualify to borrow. It is important to note that pre-approval is not a guarantee that your loan will be approved, since the lender may still turn you down after further review of your documents. In the state of Virginia, all mortgage lenders must be licensed and approved by the Virginia State Corporation Commission (SCC). The SCC sets guidelines for lenders operating in the state, so it is important to find a reputable lender who follows all of the regulations. The SCC also has rules on pre-qualifying and pre-approval, outlining the requirements for each step. Overall, pre-qualifying and pre-approval are two important steps in the mortgage process. Pre-qualifying helps you get an estimate of what size of loan you might qualify for, while pre-approval gives you a more detailed assessment and written document from a lender. Both are regulated by the Virginia State Corporation Commission.

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

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