Is a pre-approved buyer better than a pre-qualified one?
A pre-qualification is a letter from a lender stating that, based on income and a rough idea of expenses, the buyer may qualify for a certain loan amount. A pre-qualification is not a guarantee that they will be able to obtain financing, it is solely an estimation of what they can afford.
A pre-approval means the buyer has already submitted a loan application and most of the necessary paperwork to obtain a mortgage. The loan has already been approved, subject to finding a property that appraises for that loan amount.
Pre-approved buyers, therefore, have a distinct advantage when making an offer on a property. Most sellers are more likely to accept an offer when they know the buyer will not have a problem getting a loan.
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