Many Central Texas buyers think once they've been pre-qualified by a lender for a mortgage that they are pre-approved for a loan. Unfortunately there's a huge difference between being pre-approved and pre-qualified.
What is being Pre-Qualified?
Getting pre-qualified by a lender is a fairly simple process and is the first step in the mortgage process. You start by providing a lender an idea of what your debt, income and assets are. This is an informal process which can usually be handled over the phone, email or a lenders website. Pre-qualification usually does not include a view of your credit or even your actual ability to purchase a home.
Since a pre-qualification is based only on information you provide the lender your pre-qualified amount is…