The Difference Between
The PRIMARY distinction between Prequalification and Preapproval is that:
Prequalification indicates a lender’s belief that you may qualify for a loan based on your credit score and the financial information you’ve provided. It gives a wider estimate of the potential loan amount using minimal data. and no credit pull.
Preapproved for a mortgage, you have to submit documents for your lender to review, like W-2s, pay stubs, tax returns and bank statements. Your lender will also make a hard inquiry on your credit before giving you a preapproval letter. For that reason, a preapproval is more accurate than getting prequalified.
