What's the difference between mortgage pre-qualification and pre-approval?

Pre-qualification is a quick, informal estimate based on numbers you tell a lender – it gives a rough sense of what you might borrow but carries little weight with sellers. Pre-approval is the real thing: the lender verifies your income, assets, credit, and debts and issues a conditional commitment for a specific loan amount, usually with a credit pull. In competitive markets, sellers often won't take an offer seriously without a pre-approval letter, because it signals your financing is solid. Get pre-approved before you seriously shop so you know your true budget and can move fast on the right home. Keep your finances steady afterward – don't open new credit, change jobs, or make big purchases – since the lender re-checks everything before closing and surprises can derail the loan.