What’s the Difference Between Pre-Qualification and Pre-Approval?

I always explain that pre-qualification and pre-approval are two very different steps in the mortgage process. Pre-qualification is an initial estimate based on self-reported financial information. It gives you a general idea of what you might afford, but it’s not verified or guaranteed.

Pre-approval, on the other hand, involves a lender reviewing your credit, income, assets, and debts to issue a conditional commitment. In my experience, a pre-approval carries real weight—it signals to sellers that you’re a serious and qualified buyer. In competitive markets, being pre-approved often makes the difference between getting your offer accepted or not.