Fair, Better, and Best for Buyer’s Loan Approval
What Type of Approval Do You Want?
| Term | What it Means | Documents Verified | Credit Pulled | Seller Confidence | When it is Used |
|---|---|---|---|---|---|
| Pre-Qualified | Estimate based on what you say | No, none | Typically not; soft pulls are not helpful | Low | Early window shopping |
| Pre-Approval | The Loan Officer has reviewed your finances, i.e. assets, income & credit | Yes | Yes | Strong | Need to have before making an offer |
| Mortgage Commitment | The Underwriter has fully reviewed credit, income & assets and commits to funding your loan | Yes | Yes | Highest | Needed to make the strongest offer to a seller! Trumps a Pre-Approval Letter |