09/15/2023
What do "prequalified" and "preapproved" mean when it comes to loans and credit cards? Here's a quick breakdown:
📝 Prequalification: An estimate of how much the lender thinks you may be approved for once you apply for a particular loan. By sharing your financial information, such as income and expenses, you can determine if you meet the initial requirements. Soft inquiries may be used, which don't impact your credit scores. This doesn't guarantee that you will be approved for the loan.
📃 Pre Approval: It is a fixed amount of money that you can borrow, based on the information a lender gathered about your income and other financial information. It is a stronger indication that you'll be approved, although it can vary across different processes. Online pre-approval for credit cards might be synonymous with prequalification. In contrast, pre-approval offers you receive through mail, phone, or email indicate you meet specific criteria. Mortgage and car loan pre-approval involve a more comprehensive review, including income verification and credit checks.
Although both terms imply a sense of approval, pre-qualified and pre-approved are two different steps in the mortgage process.
Want to learn more about credit or loan applications? Contact us at 800-821-1412 or book a free consultation using the link below.
➤ https://calendly.com/excellentcredit/30min?month=2023-05
