What’s the difference between pre-qualified and pre-approved?

You are about to leave the Capital Bank Website

DISCLAIMER: When you click Accept you will be leaving the Capital Bank (“the Bank”) website and are going to a website that is not operated by the Bank. We are not responsible for the content or availability of linked sites.

ABOUT THIRD PARTY LINKS ON OUR SITE
The Bank offers links to other third party websites that may be of interest to our website visitors. The links provided in our website are provided solely for your convenience and may assist you in locating other useful information on the Internet. When you click on these links you will leave the Bank’s website and will be redirected to another site. These sites are not under control of the Bank. The Bank is not responsible for the content of linked third party websites. We are not an agent for these third parties nor do we endorse or guarantee their products. We make no representation or warranty regarding the accuracy of the information contained in the linked sites. We suggest that you always verify the information obtained from linked website before acting upon this information. Also, please be aware that the security and privacy policies on these sites may be different than the bank’s policies, so please read third party privacy and security policies closely. If you have any questions or concerns about the products and services offered on linked third party websites, please contact the third-party directly.

LOAN SERVICING

A pre-qualification is a letter provided to a buyer from a loan officer. It is intended to provide an indication of the mortgage the buyer might qualify for.

A pre-approval letter from a lender, however, is a letter that indicates a conditional commitment to lend. There are always conditions for things not done yet like an appraisal or title work, and possibly conditions related to things a buyer still needs to provide. But it allows the loan originator to firmly state that the buyer qualifies for a specific mortgage amount, provided all conditions are eventually met and, based on an underwriter’s review of their financial information, including their credit report, pay stubs, bank statement, salary, assets and obligations which is documentation provided by the buyer.