What’s the Difference Between Pre-Approval & Pre-Qualification?
When buying a home, lenders offer pre-qualification and pre-approval to estimate how much you can borrow. While similar, they serve different purposes in the home-buying process.
Pre-Qualification vs. Pre-Approval
| Feature | Pre-Qualification | Pre-Approval |
|---|---|---|
| How It’s Done | Self-reported info | Lender verifies financial details |
| Credit Check | Not always required | Yes, a hard credit check |
| Strength of Approval | Basic estimate | Stronger, can be used to make offers |
| Time to Get | Minutes to hours | 1-3 days |
Why Pre-Approval Matters
- ✔ Shows sellers you`re serious about buying.
- ✔ Gives a realistic home budget based on lender review.
- ✔ Helps secure better mortgage rates with early lender approval.
How to Get Pre-Approved
- ✅ Check your credit score – Aim for 620+ for conventional loans.
- 📑 Gather financial documents – Pay stubs, tax returns, bank statements.
- 🏦 Choose a lender & apply – Provide personal and financial info.
- 🔄 Wait for approval – Lenders verify income, credit, and debt.
How Long Does Pre-Approval Last?
A mortgage pre-approval is valid for 60 to 90 days. If it expires before you find a home, you’ll need to update documents and reapply.
Can You Be Denied After Pre-Approval?
Yes, pre-approval isn’t a guarantee. Common reasons for denial include:
- 📉 Major credit score drop
- 💳 New debt (e.g., auto loan, credit card balance increase)
- 🏦 Employment or income changes
- 📑 Missing or incorrect financial documents
“Getting pre-approved strengthens your position as a buyer— it shows sellers you’re serious and financially ready.”
— Sarah Thompson, Mortgage Advisor
Frequently Asked Questions
Does pre-approval guarantee I’ll get a mortgage?
No, lenders still verify details before final loan approval.
Will pre-approval affect my credit score?
Yes, a hard credit inquiry may lower your score slightly.
Can I get pre-approved by multiple lenders?
Yes! Comparing lenders can help you find the best mortgage rate.