Pre-Approval vs. Pre Qualification:
Pre-Approval is a detailed approach that can give you a firm decision on a home loan. It makes you a “cash buyer” in the seller’s eye.
Pre-Qualification establishes how much you can afford to borrow, based on how much you earn and owe. Pre-Qualification is not an assurance of mortgage approval.
Pre-approved Buyers have increased bargaining power with the Seller as they are perceived as serious Buyers and bring to the table a certain level of credibility.