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Below are some basic terms you need to know when signing a loan. "Pre-approved" vs. "Pre-qualified" Dont confuse a legitimate pre-approved credit offer with a legitimate pre-qualified offer from mortgage brokers, banks, savings and loans, and credit unions. A pre-approved offer requires only your verbal or written acceptance. A pre-qualified offer means youve been selected to apply. However, you must still must go through the normal application process, and you still can be turned down.
The Truth in Lending Act Generally, the Truth in Lending Act requires that lenders disclose the terms of a loan, including interest rates and payment due dates, to the borrower.
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