Preapproval, on the other hand, is a more official step toward applying for a mortgage. This involves a detailed assessment of your current and past financial situation.
At this stage, a lender will need to verify employment and credit history to confirm your ability to pay back a mortgage. The information you'll be asked to provide includes pay stubs, tax returns, or social security information.
This process takes longer and is much more detailed than a prequalification. However, it provides all the necessary documentation to show sellers and agents that you’re serious about purchasing a home.
Having a preapproval can make you a much more attractive buyer, which is incredibly important in a highly competitive housing market. A seller is much more likely to go with your offer than someone without preapproval