When it comes to buying a home, many people hear the terms pre-qualification and pre-approval and assume they mean the same thing. While they sound alike, the difference between the two is significant—and understanding it can make or break your homebuying journey.

What is Pre-Qualification?

Pre-qualification is simply a quick snapshot of what you might be able to afford. It’s based on unverified details such as income, debts, and assets.

Think of it as an early estimate. It’s useful for planning, but not something you can rely on when making an actual offer on a property.

---

What is Pre-Approval?

Pre-approval takes things to a much deeper level. In this process, we carefully review and verify important documents like proof of income, bank statements, and your credit report.

This gives a clear and reliable picture of how much you can truly borrow. With a pre-approval in hand, you show sellers that you are financially serious and ready to buy—making your offer much stronger.

---

The Key Differences

• Pre-qualification provides a quick estimate with no verification, making it helpful only as a starting point.

• Pre-approval involves verified documents, stronger commitment, and becomes a powerful tool when making an offer.