A pre-qualification is the first step in getting a loan. It involves providing a bank or lender with a snapshot of your overall financial picture, including your income, debt, and assets. With a pre-qualification, you can get an idea of how much you can expect to borrow. A pre-qualification is not a detailed investigation of your finances as it is based on the information you choose to provide. A pre-approval is more definitive. To receive a pre-approval, you must fill out a detailed mortgage application and supply the bank or lender with all necessary documentation in regards to your finances. Once the investigation is complete, you will be pre-approved for a specific amount. The amount is conditional but will give you an idea of what your loan may look like.