Pre-approved for a loan vs. Loan pre-qualification

[Braxton Boone]

I've heard the the term " getting pre-approved for a loan" which, from my understanding isn't the same as "loan pre-qualification". Although they sound very similar, could someone briefly explain how these are different?

[Stephanie P.]

@Braxton Boone @Chris Habets

The real answer it is depends on the lender.  National lenders/banks like Carrington, Bank of America and Wells Fargo will issue a pre-qualification which is worthless.  The loan has not gone through underwriting, no one that can sign off on anything has looked at any documents and it's based on the loan originator's experience and the limited documentation provided by the borrower in the beginning of the loan.  

Movement Mortgage is a national lender that will actually underwrite the file with TBD as the property address and the only thing to underwrite after the borrowers find a property is the collateral.  The borrower can then take their "pre-approval" and shop with confidence.

Let me know if you need a referral of a good LO in VA, DC or MD. Moderator, US Commercial doesn't do "A-paper" type loans so this is not a solicitation.

Stephanie