Posted by G.Thompson on February 21, 2001 at 16:36:48:
Let me rephrase that. There are two types of pre-approvals.
The one where a lender will provide you with a letter stating you can get a loan of up to $xxx,xxx.00.
Then you have the one where a mortgage broker has “shopped” your loan packet around to several different lenders and they tell you they have one that will work with you.
The later happened to me several years ago. The mortgage broker was telling me this just to buy time to find a lender who would really finance one of my deals.
Did you ever get a credit card offer in the mail saying you were “pre-approved” ? Pre-approved to receive their offer for a card, not necessarily approved to actually get the card and start using it!
Anyway, I hope I clarified this.