Pre-Qualified or Pre-Approval?
Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.
Pre-approval is a bit more involved because it requires a mortgage application and there can be an application fee. The lender will request your financial information and verify your credit rating and financial background to determine the amount that you will be qualified for. You receive a conditional commitment that outlines the amount you are pre-approved for.