Prequalified vs. Preapproved: Here’s How I Finally Learned the Difference (So You Don’t Have To)
When I first started looking into buying a home, I kept seeing two terms pop up over and over again: prequalified and preapproved. At first, I thought they meant the same thing. But once I actually talked to lenders and got serious about my finances, I realized they’re totally different—and knowing the difference made a big impact on my home-buying journey.
So let me break it down for you, just like I wish someone had done for me.
When I got prequalified, it was quick and casual. I gave a lender some basic info—like my income, debts, and general financial picture—and they gave me an estimate of how much I might be able to borrow. It was a solid starting point, but it wasn’t a guarantee. Think of it as a vibe check on your finances.
But when I wanted to put in an offer on a house, I knew I needed to be preapproved. That meant filling out an actual mortgage application, sharing my credit score, tax returns, and employment info. In return, I got a letter that said exactly how much I was approved to borrow. It was official and way more powerful when talking to sellers.
Here’s the deal: prequalification is a ballpark, and preapproval is your ticket to the game.
If you’re starting to think about buying a home, I suggest doing both—but don’t confuse them like I did. Get prequalified to explore your options. Get preapproved when you’re ready to make real moves.
Understanding this difference gave me clarity, confidence, and a stronger position when it mattered most—and I know it’ll help you too.
