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Anita Kay
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There's a lot of talk about home loan pre-qualification by mortgage brokers and real estate agents. There is a difference between loan pre-qualification and pre-approval. Pre-qualification, which in today's marketplace is usually done by mortgage brokers, means working with the buyer to determine how much they can afford and which loans are the most likely to be available to them. Loan pre-qualification can save a buyer time and money, and can even be a bargaining tool with a seller, however, it is not the same as loan "pre-approval". The mortgage broker can often get the buyer a pre-qualification letter

Pre-approval means that the lender has definitely committed to lending the buyer money once the house itself is approved. Since it is a much stronger pledge, it is a much more valuable negotiating tool. Only a lender can give pre-approval, but your Realtor may be able to push through pre-approval from underwriters with as little as a phone call. So when you hear someone talking about "pre-approval" make sure that it is lender pre-approval, and know that your Realtor can help.

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