Finance
A Colorado buyer's 'pre-qualification' for a mortgage differs from 'pre-approval' in that:
APre-qualification is more thorough and reliable
BPre-qualification is an informal estimate; pre-approval involves actual verification of income, assets, and credit✓ Correct
CPre-approval is provided without reviewing financial information
DPre-qualification is legally binding on the lender
Explanation
Pre-qualification is a quick, informal estimate of how much a buyer might borrow based on self-reported information. Pre-approval involves the lender verifying income, assets, employment, and pulling a credit report — it is more reliable and carries more weight with sellers.
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