What is the difference in getting 'pre-approved' for a mortgage vs. applying for a mortgage?

I am looking at a house to buy. The seller wants any potential buyer to be pre-approved by Bank of America. What does this mean? What all information will they want from me in order to pre-approve me? What if I don't want to finance through B of A? Please help!What is the difference in getting 'pre-approved' for a mortgage vs. applying for a mortgage?
go to YOUR bank and apply for the maximum amount you want to


pay for a house; it is that simple. They will pre-approve you.


thus,


a; applying


b; when your app is approved, you are pre-approved.What is the difference in getting 'pre-approved' for a mortgage vs. applying for a mortgage?
The seller can't require you to finance through a particular bank. Talk to their agent or better yet broker as this is apparent steering. You don't want to apply at B of A, get your credit pulled and then do it again at your bank as that is two hard hits on your record.





“Pre-approval” is likely to be a more formal process. Here you have actually completed the application with the lender, possibly supplied them with your income information, bank statements, W2’s, etc. The lender has asked about your employment %26amp; also runs a credit report. This is a more complete process. The lender should have run the application through an automated underwriting process.





Also a pre-approval, helps take the guesswork out of buying. In other words with a pre-approval you are closer to getting a mortgage commitment than with a pre-qualification. In the eyes of a seller, you are therefore a “stronger buyer” than the pre-qualification buyer. This is also more helpful in negotiating a better deal for you %26amp; makes you feel more comfortable with understanding the process %26amp; how it works.





Pre-qualification is I want to buy a house for x and I make y and have these debts. It isn't a real pre-approval at all.
Pre-approved means the bank makes a VERY rough approval of the loan based on your income and debts. Normally these are not really verified by the bank as there is no offer of actual credit being offered. This in ZERO way means that you must finance through BofA. BofA normally has tougher standards, so the seller wants to make sure that you can actually afford the house. Once the offer is accepted, you can finance through ANY bank you want. The seller just wants to make sure you are not wasting his time.
I would be wary of any seller that requires you to go through their lender, as this is not generally how it is done. Instead, the buyer is free to choose whatever lender they like.





With that said, a pre-approval letter can mean different things to different lenders, but usually it means the bank has looked over the information you provided and, assuming it is correct, will offer you a loan. Usually the reason to go with a pre-approval letter is because you do not have to pay the application fees yet, but remember that if you are dishonest, you might get the letter, but when they actually check your credit, they will not honor it.





Your best bet is to spend some time finding the best rate, which could very well be at BOA. However, you should do some shopping around and for them to even suggest that you go through a specific lender should raise red flags.