: Assessing your score and history to determine your reliability as a borrower.
Mortgage Pre-Qualification vs. Pre-Approval - Bank of America
To understand why pre-approval is so heavily recommended, it is important to look at how it compares to a simple pre-qualification:
It is a formal assessment by a lender stating that you are likely qualified to borrow up to a specific amount. Unlike a casual pre-qualification, a pre-approval requires the lender to thoroughly verify your actual financial documents and run a hard credit check.
: Confirming you have enough cash to cover a down payment, closing costs, and cash reserves. ⚖️ Pre-Qualification vs. Pre-Approval
: Verifying you have a reliable flow of money.