What is the difference between a pre-qualification and pre-approval letter?

Technically, most pre-approvals as they were called before the new rules went into effect WERE pre-qualifications. A loan originator would take your information, run credit, MAYBE review tax returns, pay stubs, etc, and run automated underwriting. The only way to get a pre-approval today is to actually have your file reviewed and approved by an actual loan underwriter, and get it approved subject to an acceptable property and appraisal. In short, the same level of work is being done to qualify you with today's pre-qualification as was done in most cases with the former pre-approval. It's up to you and your lender to explain this to your realtor so that he/she can present that information to the seller.

Hi Anna Marie:I agree with Scott, your loan offer should not be looked at any differently as long as your loan officer explains to your Realtor that your information has been reviewed. Good luck on your offer.Patty HarrisonSmart Mortgage 630-854-3459www.smartmortgageinc.com