What’s the Difference Between Being Pre-Qualified and Pre-Approved?

Pre-qualification is an informal estimate of how much you can afford based on self-reported data. Pre-approval is a verified commitment from a lender after reviewing your credit, income, and assets.

In my experience, pre-approval gives buyers real leverage. Sellers take pre-approved offers seriously because they signal financial readiness. If you’re entering a competitive market, having that pre-approval letter can be the difference between securing your dream home and missing out.