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Learning About Pre-Approval and Pre-Qualification

For many people, some of the most important parts of the loan process take place right near the beginning. This is the time when steps like pre-qualification and pre-approval are taken, and for some, these can make huge differences in time and hassle spent on the early stages of the process.

At Primary Residential Mortgage, we can walk you through both these steps, plus where you’ll typically go from there. Here are the basics of each.


The pre-qualification process is very simple and generally not binding in any way. You provide your basic finances to a lender, including debt, income and basic assets. This is often done over the phone or via the internet, and typically complimentary of charge. Pre-qualification doesn’t come with a credit report or any in-depth investigation of your purchasing ability.

Pre-qualification is the perfect time to ask questions of your lender, including any specific goals or needs you may have. The lender can explain your best options given your basic finances, and make suggestions. Pre-qualification is never a sure thing, but rather a rough estimate on the kinds of situations and mortgage rates that will be best for you.


Pre-approval is a similar process, but it’s more detailed and thorough. It comes with an official written application and often an application fee, and will ask for more extensive information, including credit and background checks. Pre-approval will come with a conditional, in-writing commitment for an exact loan amount, one that you can then take to begin shopping within that price range. Making an offer isn’t contingent upon you securing the financing, so this step is beneficial for people looking to move quickly.

Loan Commitment

Finally, when you’ve completed these steps and are ready to finalize, it’s time for a loan commitment. The lender issues this once they’ve approved you as the borrower, plus the home in question. They’ll run another check on your income and credit to ensure no big changes have taken place since pre-approval, and they may ask for little bits of additional information.

To find out more about pre-approval or pre-qualification, or any of our other mortgage services(purchase ), speak to the brokers at Primary Residential Mortgage today.

*The views and opinions expressed are my own and do not necessarily represent the official policy or position of Primary Residential Mortgage, Inc.

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