In the lending process, pre-qualification occurs when lenders assess your basic personal information

such as your credit score and stated income, to determine whether or not you meet preliminary criteria that allows you to proceed in the process. Soft credit checks are used in this pre-qualification process.

Some lending institutions may offer loan rates at or near the pre-qualification rate. Just because you’ve been pre-approved for a loan doesn’t mean your application has been approved. In order for the lender to make an underwriting decision, they will need additional information and documentation. Approval, denial, or a counteroffer are all possible outcomes of the underwriting decision.


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