Pre approval versus pre qualification
Both letters estimate what you can borrow. A pre qualification is a quick look. A pre approval is a full review that sellers trust in a competitive market.
The key difference
- Pre qualification A basic review of your self reported info. May include a soft credit check. Fast, but not verified.
- Pre approval Income, assets, and credit are documented and reviewed. Often includes an automated underwriting decision.
Why pre approval matters
- Stronger offers Sellers prefer buyers who have verified funds and credit.
- Clear budget You will know your real payment range before touring homes.
- Faster closing Many documents are already gathered and reviewed.
How to get pre approved quickly
- Upload income and asset documents Recent pay stubs, W two or tax returns, and bank statements.
- Grant credit pull permission Lender will check your mortgage credit scores.
- Answer follow up requests Clarify deposits, employment changes, or debts.
- Lock a rate when ready Once under contract, discuss rate options and timing.
Not sure what to send See which loan type is best for me and talk with a local lender.