GET PRE-APPROVED 3.1 "Pre-Qualification" Versus "Pre-Approval". There is a big difference between a 'pre-qualification' and a 'pre-approval'. A pre-qualified borrower has had a conversation with a lender. Perhaps the lender has obtained a credit report and based upon the information the lender has gathered so far, the borrower is pre-qualified. A 'pre-approval' means that the lender has reviewed your credit, income, and asset documentation necessary to approve your loan. With this information, a lender can assess your qualifications, discuss loan options and approve you for the loan that best meets your financial requirements. 3.2 The Interview and Application. During the interview the lender will discuss your future financial plans and complete the Residential Loan Application (1003). 3.3 Credit Check. At the time of the loan application, the lender will need to obtain a copy of your credit report. For most loan programs, the credit report is good for at least four months before it needs to be updated. 3.4 Green File Documentation. After you have completed your loan application, the lender will supply you with a detailed list of the items that you need to provide for your loan to be processed and approved. The sooner you get this information to the lender, the quicker they can proceed with your pre-approval. 3.5 Loan Status Report (LSR). In Arizona a Loan Status Report (LSR) must accompany any purchase offer. The LSR is a type of pre-approval letter. In addition to property specific information, the LSR states the loan sizes of the first mortgage, second mortgage (if applicable), rates and terms for which you are pre-approved. The LSR also requires the lender to note if a credit report has been obtained, an application signed, supporting documentation supplied and the Good Faith Estimate reviewed.