Although these two terms are used interchangeably, at times they may differ in meaning. At Banner, as proud members of The Mid-Hudson Valley Better Business Bureau, well established and known throughout the local area, the issuance of a pre-qualification letter can carry a great deal of weight, especially to those real estate professionals who know us.

In essence, a pre-qualification letter confirms that we have analyzed a prospective applicant's credit history and, in view of all representations made as to employment, income and assets (later to be verified), the applicant is approved for financing in a certain dollar amount and at a certain percentage of the purchase price. (See also high loan-to-value program page).

At times, an applicant seeks an actual approval from a lender stating the basic terms and conditions of a particular loan program. While we believe at Banner that much of the strength of our being a broker lies in our ability to direct an application to best serve the interests of the client, a pre-approval carries some degree of incentive (if even just for the sake of ease) to deal with that particular lender.

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