Financing · Buyers · 3 min read
Mortgage pre-qualification and pre-approval
The difference between the two, what a lender checks, and why sellers care.
Pre-qualification
A quick estimate of what you might borrow, usually based on information you report. It helps you set a price range but carries little weight with sellers.
Pre-approval
The lender checks your credit and documents such as pay stubs, tax returns and bank statements, and states an amount it is prepared to lend, subject to conditions like the appraisal and the property. Sellers often expect one with an offer.
Compare offers
Rates, fees and points differ between lenders. Ask each for a Loan Estimate, the standard form that makes offers easier to compare. This guide is general information, not lending advice.
General information to help you ask better questions. It isn't legal, tax, lending, insurance or inspection advice.