Is a “Pre-Approval” the same as a “Pre-Qualification”?
Any real estate professional should be able to tell you that a “Pre-Approval” is NOT the same as a “Pre-Qualification”. Prior to receiving a Pre-Approval Letter, the process consists of careful screening (performed by a certified lender) of all documents and information provided by the homebuyer before you are (or aren’t) approved. Once you receive the actual letter, it serves as a legitimate form of verification from a bank.
However, a “Pre-Qualification” does not serve as proof of anything. There is little to no screening process and it’s not recognized as legitimate documentation from a bank.