What's the difference between pre-qualification and pre-approval?
Quick Answer
Short answer: Pre-qualification is an estimate; pre-approval locks your rate with verified documents.
Detailed Explanation
Pre-qualification: A quick assessment based on your word—income, debt, assets. It's a ballpark figure that helps you start shopping but carries no commitment.
Pre-approval: Full income/credit verification, rate hold for 90–120 days, and a firm lending commitment (barring major changes to your situation).
- Sellers prefer offers with pre-approval letters
- Rate holds protect you if rates rise during house hunting
- Pre-approval can speed up final approval by weeks
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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