Prequalified vs. Preapproved: What's the difference?
Contrary to common misconception, prequalification is not the same as preapproval. Prequalifying for a mortgage doesn’t guarantee the amount you’ll be able to borrow. It’s only an estimate based on unverified finances. Preapproval provides you a more concrete number to work with, as lenders run your credit and verify your income prior to approving you for any amount. This is a much more solid number you can use to negotiate with sellers.