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Buying
a Home - Difference between PreQualifying for a mortgage and PreApproval
for a mortgage.
Pre-qualification
is an informal way to see how much you maybe able to borrow. You can be
'pre-qualified' over the phone with no paperwork by telling a lender your
income, your long-term debts, and how large a down payment you can afford.
Without any obligation, this helps you arrive at a ballpark figure of the
amount you may have available to spend on a house.
Pre-approval
is a lender's actual commitment to lend to you. It involves assembling the
financial records and going through a preliminary approval process.
Pre-approval gives you a definite idea of what you can afford and shows
sellers that you are serious about buying.
>> Learn
what a mortgage is
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