What Means What, I’m Confused!
Pre Qualified Loan Vs Pre Approved Loan Vs Conditional Offer.
At the most basic level, prequalification and preapproval are types of mortgage approvals, and they refer to the steps a lender takes to verify that a client can afford a mortgage.
The conditional loan approval is a statement from a lender asserting that the lender is willing to loan a specific amount of funds to the potential borrower after meeting specific conditions. The letter or form, however, is not a guarantee that the borrower will receive the funds needed to make the purchase. In homebuying, this still may be as good as cash if the property meets the conditions ( Appraisal etc) and nothing has changed for the worse financially for the borrower.
A prequalification generally means that a lender collects some basic financial information from you to estimate how much loan you can afford.
It’s common for a prequalification to rely on self-reported information, instead of verifying by pulling your credit report or reviewing financial documents. This means a prequalification is typically a ballpark estimate.
A pre-approval indicates the rate and amount of loan you can qualify for. The preapproval letter is issued after the lender has evaluated your financial history — including pulling your credit report and score.