Getting prequalified provides an estimate of how much you might borrow based on basic financial details you provide, while getting preapproved involves a more in-depth verification of your financial situation, resulting in a conditional loan commitment from the lender.

Prequalification gives you a clear idea of what you can afford, allowing you to focus your search on homes within your budget. It also shows sellers that you’re a serious buyer, which can strengthen your offer in a competitive market.

Prequalification is usually a quick process that can be completed in minutes or a few hours, depending on how fast you can provide your financial information.

Yes, you can still get prequalified with less-than-perfect credit. However, the loan amount you qualify for and the interest rates may be affected. It’s important to discuss your options with your lender.

Getting prequalified usually involves a soft credit check, which does not impact your credit score. It’s a preliminary step to help you understand your borrowing power without any risk to your credit.

After prequalification, the next step is to get preapproved, which involves a more detailed review of your financial situation and typically includes a hard credit check. Preapproval gives you a stronger position when making offers.