Pre-Qualified vs. Pre-Approved

What’s the Difference?

Getting pre-qualified is the first step in buying a house. It involves providing a lender with basic information regarding your debt, income and assets. From the information provided, lenders will be able to provide an idea of the mortgage amount for which you qualify, and it can usually be done at no cost.

Getting Pre-Approved is the next step in buying a house. The process requires that you complete a mortgage application and supply a lender with all the necessary documentation to check your financial background and credit rating. You will then be told the exact mortgage amount for which you are approved, which enables you significant buying power with a seller who recognizes you will be approved for a loan.