Pre-approval vs pre-qualification differences
Frequently Asked Questions
Straight answers to the questions we hear most.
A mortgage pre-approval is a comprehensive evaluation by a lender that determines how much money you are qualified to borrow for a home purchase. It involves verifying your income, assets, credit, and debt, resulting in a conditional commitment for a specific loan amount.
Pre-qualification is a quick, informal estimate based on unverified information you provide. Pre-approval is a much more rigorous process where the lender checks your financial background and credit, giving you a definitive, conditional commitment that carries significant weight with sellers.
A pre-qualification is a preliminary, non-binding assessment of what you might afford based on self-reported information. A pre-approval is a more in-depth process where the lender verifies your financial documents and performs a credit check, resulting in a conditional commitment for a specific loan amount. A pre-approval carries much more weight when making an offer on a home.
The pre-approval process can often be completed within a few days, and sometimes even within 24 hours, once you have submitted all the required documentation to your lender.
A standard mortgage pre-approval letter is typically valid for 60 to 90 days. This is because your financial situation and credit can change. You can usually get an extension if needed, provided you reconfirm your financial details.
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