What’s the Difference Between Pre-Qualified and Pre-Approved?

Understanding the Difference

These terms cause confusion, but they’re not interchangeable.

Pre-Qualification

• Quick

• Based on self-reported info

• Useful for early planning

• Not strong enough for offers

Pre-Approval

• Documents verified

• Credit pulled

• Numbers confirmed

• Accepted by sellers and agents

• Strong enough for submitting offers

If you want negotiating power and confidence, pre-approval is the stronger choice.