Realtor asks Mortgage Broker:

Good morning … was listening to a National Assoc of Realtors web thing this morning .. they were suggesting that, as realtors, we have our clients to get ‘pre-apprroved’ instead of ‘pre-qualified’ …. what does it take to get ‘pre-qualified’ .. and then, what additional steps does it take to get someone to be ‘pre-approved’.   Is that a short answer?  I thought that it was a good point, just don’t know how much additional committment and paperwork it would take.

Mortgage Broker says to Realtor:

A prequalification is based on the credit report and what the borrower tells the loan officer, as far as income and assets.  A preapproval can be issued when this information is verified by documentation and then registered and approved with a lender.  The loan is registered by submitting the application online and having it approved by DU or LP (desktop underwriter/ Loan Prospector).

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