What is the difference between pre-qualification and pre-approval?

Pre-qualification is a lender’s judgment of your ability to make payments on your mortgage, based on your verbal statement of income, assets, and employment history. Pre-approval is the underwriting decision that you are conditionally qualified for a specific loan amount, and are subject to the lender’s review of your completed application, verification of your income, assets, employment history, credit check, the home appraisal, and other determining factors.