What separates them
A prequalification is based on what you say: income, debts, a rough credit picture. It takes minutes and it is genuinely useful for orientation.
A preapproval means documentation has been supplied and a person has reviewed it. It carries weight because it has been checked.
- Prequalification: fast, self-reported, no verification
- Preapproval: documents supplied and reviewed
- Preapproval survives scrutiny from a listing agent
- Neither is a final loan commitment
Why it decides competitive offers
When two offers arrive at the same price, the listing agent looks at which one is likely to close. A preapproval from a lender they can telephone beats a prequalification letter from a website.
In DeSoto and suburban Shelby, where good houses move quickly, that is frequently the whole difference.
What neither one is
Neither is a commitment to lend. Both remain subject to the property appraising, your circumstances staying the same, and final underwriting.
Anyone telling you a preapproval guarantees the loan is overselling it.
Questions people ask
How long does a preapproval take?
Usually a day or two once documents are in, sometimes the same day.
Does preapproval hurt my credit?
It involves a hard inquiry, with your permission. The effect is small and mortgage inquiries in a short window are treated as one.
How long is it good for?
Typically sixty to ninety days, and it is straightforward to refresh.
This is not a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program guidelines. Rates, terms, programs and eligibility are subject to change without notice.
Get your numbers
Six questions. Jason answers personally, usually the same day.
Thanks — that is on its way to Jason. He will reach out shortly with your numbers.