A pre-qualification is like an audition, while a preapproval is a dress rehearsal for an actual loan application. Without digging too deeply into your financial details, a lender can estimate how much mortgage you’ll likely qualify for and some preliminary loan terms. This is commonly referred to as mortgage pre-qualification. It’s based on your estimated credit score and other details you provide the lender, such as the purchase price of a home you would like to buy, your down payment, your monthly debts and how you would want to structure your loan (length, fixed- or adjustable-rate interest, and so on). With a preapproval, you complete a full application with supporting documentation, The lender pulls your credit report and score and puts an offer in writing to give you a loan at a given interest rate. Even with a mortgage preapproval, your loan still has to go through underwriting — a final stage of due diligence before issuing the loan — after you have a home under contract. Learn the difference between pre-qualification and preapproval