Preapproval and prequalification are both ways of understanding how much you’ll be able to get approved for. There are some slight differences between these two processes, though some lenders use these terms interchangeably.

A mortgage prequalification is like a preapproval, but it may not be as accurate. With a prequalification, you won’t have to provide as much information about your finances, and your lender won’t pull your credit.

• Pre-qualified will provide you an estimate of how much you can borrow.
• Pre-approval will actually specify the loan amount you’re eligible for.

When you get preapproved, you may be required to provide information or documents like bank statements and pay stubs to prove your income and the funds you’re using to get the loan. A preapproval will also require a hard credit check so your lender can get your credit score and see how much other debt you have.

A preapproval is helpful when you’re shopping for a home, but you’ll need to get a full approval once you find your home, and simply getting a preapproval before you start looking at properties doesn't guarantee you’ll get approved. For your lender, this process includes making sure the property details check out.

Here are a few property details your lender will need to approve:

• The appraisal value: Your lender will order an appraisal of the home to make sure you’re not paying more for the home than it’s actually worth. An appraisal that comes back lower than the purchase price could pose problems for your loan.
• The title: Your lender will work with a title company to confirm who owns the property and make sure there are no claims or liens against it.
• The home’s condition: Some loans require that the property meets certain standards before the loan can close. For instance, if you’re purchasing the home with an FHA loan, things like cracked windows, missing handrails or a roof in poor condition could keep the loan from closing.

Yes. Mortgage pre-approval involves taking a deeper look into your finances and credit history.

It can take between 1-3 days, or up to 10 business days in some cases. It largely depends on how swiftly you can provide the lender with the required documents needed to valuated your creditworthiness and ability to repay a mortgage loan.

Typically, the letter will be valid between 60 to 90 days. Reverification is an option if your circumstances change (a change in your income, for example).

During the period of shopping for a home and purchasing a home, you do not want any huge changes in your credit (other than that which is recommended by your lender such as paying down a credit card). Purchasing a car, new furniture, changing jobs are examples of things that may alter your pre-approval status.