I would be very interested in feedback on the defining difference in your bank's definition between a pre-approval
and a pre-qualification with respect to a first mortgage
loan for a purchase.

For our bank:

Pre-qual - You give us income figures, debt figures and the amount of down payment you have available. We run a quick analysis and tell you based on the information provided you could qualify for a loan in X range.

Pre-approval - we require full application information and we run the information through our underwriting procedures and give you either a yes or no answer.

In the Pre-qual scenario, are you pulling a credit bureau?

In the Pre-approval scenario, are you making the approval subject to verification of income or employment?

1. No.

2. No. As I said, for pre-approvals we run the request through our underwriting procedures.

Is anyone making the pre-qual vs pre-approval distinction based on whether or not a compliant commitment letter is given?