What is the difference between pre-qualification and pre-approval?

Pre-qualification is a quick, informal estimate of what you might be able to borrow based on information you self-report to a lender, while pre-approval involves the lender actually verifying your income, credit, and assets to issue a conditional commitment. Sellers generally take a pre-approval far more seriously than a pre-qualification letter when reviewing offers. Brian Beatty recommends buyers get a full pre-approval before touring homes, especially in a competitive Lowcountry market.