When you get pre-qualified, you’ve presented your financial situation including your income, debts, employment history, and available funds. Once you’re pre-qualified, you will receive a Pre-Qualification Letter, which states your lender is confident, based on the information provided, you’ll qualify for a loan at a stated amount.
To be pre-approved means your lender has done a thorough review and verification of your income, assets, employment and credit to determine you’re qualified for the loan. You’ll receive a pre-approval letter for an exact loan amount.
Both pre-qualification and pre-approval letters are good for a specific amount of time and dependent on no material or significant changes to your employment or financial situation prior to closing.