The Difference Between A Pre-Approval, APre Qualification and A Commitment – Why It Matters!!!

Wondering whether you need a “mortgage commitment letter”?  Certain terms in the mortgage industry sound alike but are completely different.  For instance, pre-qualification, pre-approval, and mortgage commitment all sound similar.  But these three terms- which describe three different types of letters you can get from a lender- mean three different things. Lenders usually provide one of the three and at different times in the mortgage approval process. Pre-Qualification Letter:   This is the loosest OK from a lender, indication that they may possibly grant you a mortgage. It may come in the form of a letter or a verbal agreement.  The lender most likely talked to you about your income,…

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