Best Answer: If you have been pre-approved for a FHA or Conforming loan, that that is normally more accurate than being pre-qualified. The person you are working with will run your loan application and credit, thru DU or LP (Fannie Mae or Freddie Mac) automatic systems. If they get an online approval - you are on your way to getting your mortgage. Job time, assets will be verified for accurancy.
PREQUALIFIED VS. PRE-APPROVED
Should I ask a lender pull my credit to get Prequalified or Pre-Approved? You should authorize a lender to pull your credit only if you have selected that lender to be your lender for the transaction. If you are still shopping around you may want to wait to have your credit report pulled. Why? Every time a lender pulls your credit it can lower your credit scores which could potentially affect your approval or interest rate.
What's the difference between getting Prequalified and Pre-Approved? At one time these terms meant essentially the same thing, however, with today's technology there is a meaningful difference. Getting prequalified usually involves a discussion of the primary parameters of your situation including:
Savings/Equity for Down Payment and Cash Reserves
Prequalifying gives you an estimate of the loan amount you would be approved for. There are a number of variables like debt-to-income ratios, credit scores, type of loan program, down payment percent, etc. which can have
a significant impact on how much home you qualify for. Prequalifying uses standard guidelines to determine the loan amount you would qualify for.
Getting a Pre-Approved is a more detailed process which generates a more specific result. Getting Pre-Approved requires a credit report, a completed a loan application, a decision on a specific loan program and submission of the information directly to a lender, or to Freddie Mac or Fannie Mae (online) to get an initial decision. Freddie Mac or Fannie Mae approvals have more flexibility because they can be used at almost any lender since lenders follow these guidelines in their underwriting decisions
Getting Pre-Approved is much more accurate than getting Prequalified for another important reason. When being Prequalified it is common to use standard underwriting guidelines and ratios. However, loan approvals are much more complicated and sophisticated than in the past due to the introduction of technology used in making these decisions. A Pre-Approval gives you specific information based on all the primary variables.
IMPORTANT: The Pre-Approval is not a final approval because it is subject to verification of the facts stated on the loan application. Also, after getting Pre-Approved, it is strongly recommended that you do not apply for any other loans or have your credit pulled by any other lender until your loan closes. Lenders reserve the right to look at your credit report one last time a couple of days prior to closing to make sure nothing has changed