Pre-Qualification
This is an assessment by the lender, based on certain basic information given by the borrower (e.g. employment, income, asset information, current monthly debt, and credit worthiness). Based on this quick evaluation the lender makes a decision to pre-qualify the borrower.

Pre-Approval
Like a pre-qualification, a pre-approval involves a lender making an assessment of a borrower's buying capacity based on her or his income. But unlike a pre-qualification, a pre-approval requires the lender to verify the borrowers credit, income documents, assets, and any documentation required by the lender. A pre-approval takes longer to process and will require more comprehensive documentation, but gives a clearer and more definitive picture of the borrowers ability to qualify.

Why Choose Pre-Approval?
It's advisable to go straight to a pre-approval for several reasons. A pre-approval can strengthen your purchasing power: it is a far more accurate evaluation of how much home a borrower can qualify for. A pre-approval is more appealing than a pre-qualification in a competitive market. It is also more time-effective since it reduces the time your lender will need to process and fund your loan.

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