What is the difference between prequalification and preapproval for a mortgage?

Prequalification is an informal estimate of how much a borrower might be able to borrow, based on self-reported income, assets, and debts without verification. It provides a rough budget range but carries no commitment from the lender. Preapproval is a formal process where the lender verifies the borrower's credit, income, employment, and assets, then issues a conditional commitment to lend a specific amount. Preapproval carries much more weight with sellers because it demonstrates the buyer has been vetted financially. ---