Both pre-qualification and pre-approval provide borrowers with an estimation of how much home they can afford. However, a mortgage pre-approval is a more official step that requires the lender to verify the borrower’s specific financial information and credit history.

Before submitting an offer on a home (or even engaging with a real estate agent) you’ll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days.