What's the difference? Pre-qualify, Pre-approve?

It sometimes feels like these two words are used interchangeably but there is an actual difference. As an agent the most important difference for the buyer is the strength of the offer. An approval letter from a lender will far surpass the a qualification letter.

Pre-qualification is based on data you submit to a lender, who will provide a ballpark estimate of how much you can borrow. Your pre-qualified amount isn't a sure thing because it’s based only on the information you've provided. The lender won't take a close look at your financial situation and history to determine how much mortgage you can reasonably afford until you reach the pre-approval stage. You’ll receive a conditional commitment in writing for an exact loan amount after you've been pre-approved.

Here’s a quick comparison chart from Investopedia: