Pre-qualified for a Mortgage: The lending business gives you an estimate of how much house you can afford, approximate monthly payments, down payment and closing costs.
Pre-approved for a Mortgage: The lending business formally assesses the credit history, employment history, debts, gross income before taxes and spouse’s income and any property or assets you own, rather than just informally review them the way it does in a pre-qualification.
Some real estate agents and mortgage agents might tell a prospective home buyer that home sellers will require that the home buyer have a mortgage pre-approval letter from a lender. This is one of the several nonsensical sales pitches of the greater real estate industry.
Stretch your legs only as far as the bed is – Indian proverb
I am a Civil Engineer from Louisiana State University. The compound word, Americaneer, is a combination of the words, American and Engineer.
A large fraction of deals don’t close these days.
A buyer might want a pre-approval first for their
own benefit.
And you might have to show it to the seller’s
agent prior to getting them to show homes to you.