ASK LITRA: What’s the Difference Between Pre-Approval and Pre-Qualification?

In the latest episode of "Keys to Success," host Litra Simms demystifies a common question in the world of real estate: the difference between pre-approval and pre-qualification when buying a home. The podcast explains that pre-qualification is a preliminary, informal process that gives potential buyers an estimate of what they can afford based on self-reported financial data. On the other hand, pre-approval is a more detailed, official step that requires a full mortgage application and credit check; it provides a conditional letter from the lender stating how much they're willing to lend. Depending on the buyer's position, pre-qualification can be useful for casual browsing, while pre-approval is crucial when making a serious offer, assuring sellers of the buyer's financial readiness.