What's the difference between pre-approval and pre-qualification?

Pre-qualification is a quick estimate of what you might borrow, based on information you tell the lender. Pre-approval is a deeper review where the lender checks your credit, income, assets, and debts, and it carries more weight when you make an offer. Neither is a guarantee of a loan, because final approval depends on the home, the appraisal, and your finances staying the same through closing. Back planning matters in the approval process too. Lenders typically ask for recent bank statements and tax documents, so having two months of bank statements and two years of W-2s ready puts you ahead of most buyers. Be careful not to pack them during your move. Lenders use these terms differently, so ask yours how they define them.