You will here things like pre-qualified and pre-approved and wonder what is the difference? Pre-qualified simply states that based on a certain amount of information given you can qualify for a certain amount of money. This is subject to the verification of the information, of course.
To be pre-approved means that your credit has been pulled, your employment has been verified in writing, your income has been veriifed via employment letters, pay stubs and tax returns. Money has been verified via the bank statements.
It is far better to be Pre-Approved when you make an offer on a home. It could be worth a thousand or two when negotiating.
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