 | Richard Ciemny is Vice-President, Director & Branch Manager of The First National Bank of Anthony, Wichita Branch. Richard has been in the banking profession for many years in the Wichita area. He has been an active member of the Kansas Bankers Association and the Community Bankers Association of Kansas. The First National Bank of Anthony, Wichita Branch, is located at 10111 W. 21st St. North. You may contact Richard at (316) 721-9000. |
Banking & Finance
2002-08-01 12:08:00
What’s the difference?
: What's the difference between being pre-qualified and pre-approved for a home loan?
Richard Ciemny
Question: What's the difference between being pre-qualified and pre-approved for a home loan?Answer: A pre-qualification is an estimate of how much mortgage you may qualify for based on preliminary information that you have provided to a loan officer. This preliminary information would include such things as income, debts, assets and liabilities. It is important to understand that a pre-qualification is not a commitment by the lender but rather a preliminary"looks good" test by the loan officer.In contrast, a pre-approval is a formal commitment by the lender to grant you a mortgage based on a set of conditions. In order to issue a pre-approval, a lender must review your application and verify your income, employment, assets, liabilities, credit history and cash available to close the transaction. Upon completion of the verification process the lender will issue a pre-approval letter that can be used with your offer on your next home. You may find that being pre-approved prior to making your offer will strengthen your offer and put you in a better negotiating position. In the Greater Wichita housing markets, it really is a must. With today's emerging technology, borrowers can be pre-approved in as little as 24 hours with one phone call.
