What is the difference between prequalified and preapproved?

A prequalification provides you with an estimate of how much your mortgage loan officer believes you can afford to borrow when purchasing a home. Your mortgage loan officer will rely on the information you provided in making this determination.

Being preapproved means you have submitted an application and your loan officer has reviewed and verified your financial information and credit history. A preapproval letter will be issued informing you of the Bank’s willingness (not a guarantee) to lend a specific amount to you.