What is the main difference between a mortgage pre-qualification and a mortgage pre-approval?

Pre-qualification is an informal estimate of how much you might be able to borrow based on information you provide verbally or online, with no credit check or document verification. Pre-approval is a more rigorous process where the lender pulls your credit report, verifies your income with pay stubs and tax returns, checks bank statements, and issues a conditional commitment letter for a specific loan amount. Sellers take pre-approval letters much more seriously, and having one can make your offer significantly more competitive in a hot market.