A pre-qualification is an estimate from what you tell a lender. A pre-approval is based on your documents and credit, and it’s what sellers want to see with an offer.
Side by side
| Pre-qualification | Pre-approval | |
|---|---|---|
| Based on | What you tell the lender | Your pay stubs, tax returns, bank statements and credit |
| Credit check | Often none, or a soft check | A full credit report |
| How sellers see it | A rough guide only | Evidence you can close |
| Time | Minutes | Usually a day or two once documents are in |
| Accuracy | Can change a lot once documents are reviewed | Holds unless your finances or the property change |
When a pre-qualification fits
- You’re months away from buying and want a rough budget.
- You want to see a range before sharing documents.
When a pre-approval fits
- You’re ready to make offers.
- You want to know your real budget and catch problems early.
Guides and calculators
Questions
Is pre-approval better than pre-qualification?
Yes, when you’re ready to buy: it’s based on verified documents and credit, so sellers take it seriously and you know your real budget.
Does a pre-approval hurt my credit?
A credit check can lower your score by a few points for a short time. Several mortgage checks within a short window count as one, so you can compare lenders.
How long does a pre-approval last?
Often 60 to 90 days, because credit reports and pay stubs age. Updating it is quick if your situation hasn’t changed.
