Pre-Qualification vs. Pre-Approval vs. Loan Commitment
Pre-Qualification
A pre-qualification is a preliminary assessment of your ability to obtain a loan based on information you provide, typically without verification of income, credit, assets, or employment. Pre-qualification is not a loan approval and carries no guarantee of financing.
Pre-Approval
A pre-approval is a more thorough review that may include credit checks, income verification, and asset documentation. While pre-approval carries more weight with sellers than pre-qualification, it is still not a final loan approval or commitment to lend. Pre-approval is subject to:
- Property appraisal
- Final underwriting review
- No material change in your financial situation between pre-approval and closing
- Property insurance and title requirements
- All applicable underwriting guidelines
Loan Commitment
A formal loan commitment is issued after full underwriting approval and satisfaction of all loan conditions. Even after commitment, closing is contingent on satisfying all remaining conditions up to and including the closing date.
Underwriting Guidelines
Loan approval is governed by program-specific and investor-specific underwriting guidelines. These guidelines are subject to change and may include (but are not limited to):
- Minimum credit score requirements
- Debt-to-income ratio limits
- Loan-to-value and combined loan-to-value ratios
- Reserve requirements
- Property type and condition requirements
- Employment and income stability requirements
No Guarantees
Kay Huffman and Kyber Mortgage Corporation dba Hypersmart Home Loans make no representation, warranty, or guarantee that:
- Any specific loan program will be available to you;
- Any specific interest rate or APR will be offered;
- Your loan application will be approved;
- Your loan will close on any particular timeline.
For specific eligibility questions, please contact Kay directly at 817-456-3555.