Prequalification
A quick estimate from figures you state yourself, with no supporting documents and no deep credit check. Useful for a ballpark, with no commitment value whatsoever. A seller is under no obligation to accept it.
Pre-approval
The lender reviews documents — income, debts, credit file — and confirms an amount along with a rate held for a set period. It covers you, the borrower, but not yet the property.
Final approval
This comes after an accepted offer: the lender also assesses the property — appraisal, title, compliance, sometimes inspection — and confirms the terms. It is the only stage that truly commits the financing.
What the rate hold covers
A pre-approval usually locks a rate for a limited period. If rates fall before you buy, most lenders grant the better one; if you run past the period, the hold lapses and the file is reassessed.
What can undo a pre-approval
A job change, a new debt, a financed car purchase, a drop in credit score, or a property the lender appraises below the price paid. Nothing in your file should move between pre-approval and closing.
The order that matters
Get pre-approved before making an offer, and avoid filing with several lenders in parallel: each can leave a mark on your credit file. A broker submits once and shops on your behalf.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.