Prequalified vs Preapproved

So most people don't know the difference I thought I would throw a quick run down of the two:

Pre-qualified means that you have been talking with a bank and based on your financials you should be able to buy a house, it is the very lowest level on the food chain.

Pre-approved means that they have pulled credit, checked your debt to income ratio and are pretty confident that they will loan to you.

Underwritten pre-approval is the best form of pre-approval but most banks don't do this, they will actually submit your application and put you through underwriting to ensure you are fully qualified to purchase.

Even if you have the underwritten pre-approval there are things that could make your loan fall through IE a judgment or something new that hit your credit a few days before closing.

Hope this helps shed some light on this.