Pre-Approval vs Pre-Qualification

Pre-Approval vs Pre-Qualification

Summary: Pre-approvals and pre-qualifications both provide buyers with an estimate on how much money they can borrow to buy a house. A pre-qualification uses self-reported information such as income, debt, and assets to determine a loan amount. A pre-approval verifies the buyer’s financial information and offers a more detailed loan estimate by providing the loan type, term, and amount. A pre-approval carries more weight than a pre-qualification for realtors and sellers due to the financial verification.

Before you apply for a mortgage, it helps to know how much money you can borrow to buy a house. Pre-approvals and pre-qualifications do that. The purpose of a pre-qualification and pre-approval is to provide buyers with an estimate on how much money they can borrow to buy a house and to focus on homes they qualify for. They are a great opportunity to have initial conversations with mortgage lenders, go over your finances, and begin the home search. Both letters are an estimate and can be changed or updated pending several factors or changes in finances.


  • Buyers self-report their debt, income, and asset information.
  • Mortgage lenders will solely rely on the self-reported information to provide an estimate on how much money can be borrowed.
  • Credit reports are not pulled and financial documents are not verified.


  • Borrowers apply for a pre-approval.
  • Lenders will pull a credit report on borrower and co-borrowers.
  • Mortgage lenders will verify the following:
    • Income
    • Assets
    • Debt-to-Income Ratio (DTI)
    • Credit score
  • Borrowers will receive an estimated loan amount, type, and loan terms for the potential housing loan.
  • Pre-approvals are more valuable than a pre-qualification due to the credit pull and financial background check.
  • The letter allows real estate agents to screen homes borrowers qualify for.
  • A Hall Financial 5-STAR Certified Pre-Approval lasts 90 days.

For more information, chat with us at or give us a call at 866-Call-Hall.