Pre-Qualification vs. Pre-Approval: Building the Website Funnel Between Them
The real difference between mortgage pre-qualification and pre-approval, and how to build a website funnel that turns payment curiosity into applications.
FAQ · 2 questions
Questions loan officers ask
Is a pre-qualification letter worth anything to a seller?
Less than a pre-approval letter. A pre-qualification letter shows a borrower has talked to a lender and given basic figures, but nothing has been verified. Most listing agents ask for a pre-approval, which follows a credit report and some document review. Treat the pre-qual as the start of the file, not something to send with an offer.
Does a pre-qualification hurt the borrower's credit?
A website pre-qualification usually involves no credit inquiry at all, because it runs on numbers the borrower types in. A pre-approval normally includes a credit report. Whether that pull is a hard inquiry depends on the lender's process, so tell the borrower plainly what will happen before you order it.
PrequalFunnel
Your next borrower is already on your site.
Give them the numbers they came for, and get the lead with those numbers attached.
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