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Answer: Pre-qualification is an initial step in the mortgage process where a lender evaluates your financial information based on self-reported data provided by you. This typically includes details such as your income, assets, debts, and credit score. Pre-approval, on the other hand, is a more thorough process. The lender conducts a comprehensive review of your financial documents to determine the exact amount they are willing to lend you. This involves submitting documentation such as pay stubs, W-2 forms, bank statements, and tax returns. The lender verifies your income, assets, employment history, and creditworthiness during this process. Once pre-approved, you'll receive a conditional commitment letter from the lender, specifying the loan amount for which you are approved. Pre-approval carries more weight than pre-qualification because it is based on verified financial information and demonstrates to sellers that you are a serious and qualified buyer.