Pre-Approval or Pre-Qualification? What You Need to Know

Pre-approval is a more detailed process. Buyers must provide proof of their financial details, such as:

• Bank statements

• Pay stubs

• Savings and investment records

The lender reviews these documents to determine whether the buyer can actually afford a mortgage. Sometimes, the pre-approval process reveals that the buyer’s initial answers during pre-qualification were incorrect, filtering out buyers who wouldn’t qualify for a loan.