What does “pre-qualified,” “pre-approved,” and “fully underwritten” mean?

The mortgage industry often misuses or confuses the terms prequalified and pre-approved. Pre-qualified means that just your credit—but not your supporting information—has been reviewed to verify your purchasing power. A pre-approval requires a more thorough vetting, in which a lender has verified your debts, assets, income, and supporting documents, such as pay stubs and tax returns. Not only does Knock pre-approve you as part of our normal process, we also send your file to an underwriter so you’re fully underwritten for your mortgage in advance of your new home search. This is why working with Knock allows you to close faster than traditional lenders.