Pre-Qualification vs. Pre-Approval:

Pre-qualification:

Can be done quickly, often within minutes or a few hours, as it's based on self-reported information and doesn't involve a hard credit check.

Pre-approval:

Takes longer, typically a few days to a week, as it involves a credit check and verification of financial documents. The exact timeline can vary depending on the lender and your responsiveness in providing required information.

Pre-approval Letter:

A conditional commitment from a lender to lend you a specific amount, subject to certain conditions being met, such as a satisfactory appraisal and verification of your financial information.

Loan Commitment Letter:

A more formal document issued after underwriting and final approval, outlining the specific terms of your loan and confirming the lender's commitment to fund your mortgage.

Yes:

It's advisable to shop around and get pre-approved with multiple lenders to compare offers and secure the best rates and terms.

Credit Score Impact:

Multiple hard credit inquiries within a short period can slightly lower your credit score. However, most credit scoring models consider multiple inquiries for the same type of loan within a specific timeframe (usually 14-45 days) as a single inquiry.

Inform Your Lender:

It's important to notify your lender immediately if your financial situation changes significantly, such as a change in income, employment, or debt levels.

Potential Impact on Approval:

These changes could affect your pre-approval status and may require you to reapply or adjust your loan terms.

Yes:

Self-employed individuals can get pre-approved, but may need to provide additional documentation, such as profit and loss statements or bank statements, to verify their income.

Specialized Lenders:

Consider working with a lender experienced in self-employed mortgages who understands the unique challenges and documentation requirements.