Mortgage Preapproval vs. Prequalification

Before you choose a home you want to purchase, you’ll need to know how much financing you’re eligible for. Mortgage prequalification and mortgage preapproval are two ways in which a lender lets a borrower know how much he or she can borrow. There are some key differences when it comes to mortgage preapproval vs. prequalification, which we’ll discuss in this week’s blog from CalStar Mortgage Inc. If you’re interested in buying a home in La Cañada Flintridge, CA, start with CalStar Mortgage Inc. We can provide the one-on-one guidance you need so you can find and finance the home of your dreams.


Prequalification is a simple and fast estimate that a mortgage lender makes to a potential borrower. It’s not a contract and not an official document. However, it can be a great way for clients to get a good feel for what rates and terms they might be able to secure with different lenders. Prequalification can be done over the phone. In most cases, clients don’t have to submit credit card statements or other documents to prove your income. However, you will give your lender information about your financial status. The more honest you are about your finances with your mortgage agent and private lenders, the more realistic your prequalification quote will be.


Preapproval is a more involved and official estimate lenders provide to certain borrowers. With preapproval, lenders provide a conditional commitment in writing for a specific loan amount to a borrower. Because it’s official, applicants will need to provide a larger number of documents, including a copy of a credit rating, documents showing your payment history and various bank accounts, as well as W2s and pay stubs to document your employment history and income. Basically, all the documents you must provide to officially apply for and finalize a mortgage.

Getting preapproval or prequalification is great not only because it gives you and your real estate agent guidelines for how much home you can afford. It can also give some sellers more confidence that you are serious about purchasing a home, which may put you at an advantage when compared with other buyers.

Getting Started

If you’re interested in learning more about mortgage preapproval vs. mortgage prequalification, the CalStar Mortgage Inc. professionals are here to answer your questions. If you’d like to get preapproval or prequalification, contact us today. We have long-term experience in the local area in La Cañada Flintridge, some of the most competitive interest rates from top lenders, and we offer preapproval and prequalification.