Should I get pre-qualified or pre-approved?
Cynthia E. Brodrick

Getting pre-qualified is so easy that an experienced mortgage broker, such as Anderson, can do it with one hand tied behind his back. If you present him with your financial numbers, he can tell you practically off the top of his head how much of a loan you may get. But remember: It's not a promise of any money.

If you're serious about getting a mortgage, then you'll want to get pre-approved. Oh wait, they're changing the term already: There's really no pre-approved. Anderson explains that you're either approved or not. If the lender has been through your actual paperwork and validated it, but there's not an actual house to go with a mortgage, then you are credit-approved. Once you are asking for a certain amount of money for a particular piece of property, well, whaddya know -- you're approved already!

-- Posted: Aug. 26, 1999