What exactly does "pre-qualified" mean (or pre-approval vs approval)?
The term "pre-qualified" can have different meanings depending on the lender. A pre-qualification generally means that you have provided your personal information to the lender (including income, assets, and employment) and the lender has obtained a credit report and reviewed your credit history. If you receive a pre-qualification this means that based on your credit report and the information you provided to the lender, you will qualify for a specific type of mortgage up to a certain loan amount. An approval takes this a step further by submitting a full loan application to the lender, including income, asset, and employment information, such as paystubs and bank statements. An underwriter for the lender will review this information along with the credit report and make a final determination on your eligibility for a specific type of mortgage and a specific loan amount.