09/05/2026
🏡 Prequalified or pre-approved—what’s the difference?
The terms sound similar, but they don’t carry the same weight when you’re buying a home.
Prequalification is an initial estimate of how much you may be able to borrow. It’s generally based on basic financial information you provide to a lender.
Pre-approval is a more detailed review. The lender typically examines your income, assets, debts and credit history before determining how much you may qualify to borrow.
A pre-approval gives you a clearer idea of your buying power and can show sellers that you’re a serious, prepared buyer. However, it is not a final loan approval—your finances, the property and other requirements must still be verified.
If buying a home may be in your future, getting pre-approved before you begin looking can help you shop with greater confidence.
Kim Ujcich, REALTOR® EXIT Real Estate Consultants
Helping you make the right move.