preapproved vs prequalified

What's the difference between Pre-Qualification and Pre-Approval?

Loan Pre-Qualification

Getting pre-qualified for a mortgage is the first step in the homebuying process. Whether you have a home picked out or simply want to know what you can afford, a loan pre-qualification will help you to determine the size of the loan that you can qualify for. Complete the online pre-qualification process, provide the qualifying information (employment status, income, debt and assets) and within 48 hours you will receive notification of your pre-qualification status.

Loan Pre-Approval

A loan pre-approval takes the pre-qualification process one step further. By providing documentation to verify the stated qualifying information, a formal loan approval can be obtained for a specific loan amount. This documentation may include current paycheck stubs, tax returns and asset statements. Once you have been approved, you may select a home to purchase based on your approved loan amount.