Mortgage Pre-Approval vs Pre-Qualification: What is the Difference?

Pre-qualification (also called pre-screening): you tell the lender your income, debt and assets verbally or via a quick form. They give you a rough loan amount you might qualify for. It takes minutes, costs nothing, and isn't verified. Sellers do not treat pre-qualification as a serious offer signal. Pre-approval: the lender pulls your credit report, verifies income via pay stubs and tax returns, confirms assets via bank statements, and issues a written letter committing (subject to property appraisal + final underwriting) to a specific loan amount. Pre-approval letters typically last 60-90 days. In competitive markets, sellers often refuse to entertain offers without a pre-approval letter attached. Our Home Affordability Calculator estimates the pre-approval number you would likely qualify for.