What each one is based on
A pre-qualification can be wrong if the income or debt figures were wrong. It is still useful as a first ceiling.
A pre-approval is stronger because the lender looked at documents. It can still be conditioned on the appraisal, the title, and the property.
How this site fits
Our affordability result is closer to a pre-qualification than a pre-approval. It believes the income and debts you type and applies a teaching ratio.
Bring a pre-approval letter from a lender if you need one for an offer. Printing this site's result is not that letter.
| Letter | Typical basis |
|---|---|
| Pre-qualification | Stated figures |
| Pre-approval | Documented review |
| This site | Your entries and a 28/36 model |
Calculators
Related guides
Sources
Common questions
Does a pre-approval lock the rate?
Not by itself. A rate lock is a separate agreement with its own expiration.
Will several pre-approvals hurt my credit?
Mortgage inquiries in a shopping window are often treated differently from other credit pulls. The exact treatment is a credit-scoring question, not one this calculator answers.