What Is the Difference Between Pre-Approval and Pre-Qualification?

When you’re starting the home buying process in Portland, you’ll often hear the terms pre-qualification and pre-approval. While they sound similar, they carry very different weight when it comes to making an offer on a home.

Pre-Qualification: The Starting Point
Pre-qualification is a quick and simple step where a lender gives you an estimate of how much you may be able to borrow. It’s usually based on self-reported information about your income, assets, and debts. Because the lender isn’t verifying documents at this stage, pre-qualification is more of a ballpark figure than a guaranteed number. It’s helpful early on to set expectations, but it won’t carry much weight with sellers.

Pre-Approval: The Real Deal
Pre-approval takes things a step further. Here, you provide financial documentation—pay stubs, tax returns, bank statements—and the lender runs a credit check. Based on this verified information, the lender issues a pre-approval letter stating the loan amount you qualify for. Pre-approval shows sellers that you are a serious, qualified buyer and gives you a competitive edge in Portland’s fast-paced market.

So What? Why It Matters in Portland’s Market
In today’s competitive Portland real estate market, sellers want certainty. A pre-qualification won’t give them that—but a pre-approval will. If you’re serious about buying, getting pre-approved is the smart move. It can be the difference between getting your dream home or losing out to another buyer.

As a trusted Portland Realtor, I help guide my buyers through every step, including connecting them with local lenders who understand the market and can provide a strong pre-approval.

Looking to buy a home in Portland? Let’s talk about getting you pre-approved and positioned for success.

Lisa Mehlhoff Homes – Portland Realtor