What is the difference between mortgage pre-approval and pre-qualification?

Pre-qualification is a soft estimate based on stated info. Pre-approval is a verified commitment based on actual credit, income, and asset documentation.

Pre-qualification is a quick, informal estimate. The lender asks about your income, debts, and credit; runs a soft credit pull (or no credit pull at all); and gives you a ballpark loan amount. No documentation reviewed, no commitment. Useful for early window-shopping but carries no weight with sellers. Pre-approval is the real deal: the lender pulls your hard credit, reviews 2 years of W-2s or tax returns, verifies asset balances via bank statements, and produces a written commitment letter stating you qualify for a specific loan amount subject to property and final underwriting. Pre-approval letters strengthen offers in competitive markets - sellers prefer pre-approved buyers because the financing risk is minimal. Always get pre-approved before making offers in a hot market. Pre-approval letters are typically valid 60-90 days; lenders re-pull credit and re-verify employment near closing. The credit pull is hard (drops FICO 2-5 points temporarily), but multiple mortgage pulls within 14 days count as one inquiry under FICO's rate-shopping window.