Pre-Qualification

* Provides a "ballpark" estimate of your borrowing power

* Is based on summary information you provide on your income and assets

* Requires satisfactory review of property, financial documents and program requirements to issue final approval

* Is offered by most lenders

Pre-Approval

* Provides proof to real estate agents and sellers that you're approved for a specific loan amount

* Is based on a verification of your income, credit and assets (in some cases, verification may not even be necessary)

* Requires a satisfactory appraisal and title review and no change in financial condition for final approval