If you ever actually read a generic advert for a mortgage broker, it will cover the basics of the job description of said mortgage broker or firm. We arrange financing for home purchases, re-financing for people trying to alleviate their debt, switches (finding a better interest rate at a different lender) and pre-approvals.
When most people start thinking of home purchasing they say 'Hey, we should get a pre-approval so we know how much we can afford'. They will then call me or a fellow broker up and tell them as such. Perhaps say 'I saw your advert' or 'I got your name from (blank) and want to buy a house. How much of a pre-approval can I get?'.
Now, here's where things get confusing for some; they want me to give them an answer preferably during that phone call yet what they are really going to get is a pre-qualification; they are just 'feeling' things out, to see if where they should start looking in the MLS listings; which is completely fine.
However, a pre-approval is backed up by evidence of your income and debts; it is actually no different than an actual approval other than there is not currently a house associated with the pre-approval. We assume that there will be one soon however. But if you want to just tip your toe in the water, talk to a mortgage broker about a ....
