| Pre-Qualification | Pre-Approval | |
|---|---|---|
| Documents required | None | Full document review |
| Credit check | Soft check or none | Hard inquiry |
| Accuracy | Rough estimate | Actual qualified amount |
| Rate hold | No | 90–120 days |
| Seller confidence | Low | High |
| Time required | 5 minutes | 24–48 hours |
| Worth doing | Only if just exploring | Always — before making offers |
Pre-Qualification — What It Actually Is
Pre-qualification is a quick estimate based on information you provide — income, debts, assets — without verifying any of it. It takes 5 minutes online. It's not a commitment from any lender. It won't protect you in a competitive offer situation and it doesn't lock in a rate.
Pre-qualification is better than nothing if you're just starting to explore. It's not sufficient if you're actively making offers on properties.
Pre-Approval — What It Actually Is
Pre-approval means a lender has reviewed your actual documents — income verification, credit check, employment confirmation — and committed to lending you up to a specified amount at a specified rate for 90–120 days. This is a real financial instrument that protects you in two ways:
- Rate hold: if rates rise before you find a home, you keep the lower rate
- Budget certainty: you know your real purchasing power, not an estimate
Why Calgary Buyers Should Always Get Pre-Approved
Calgary's real estate market moves quickly. Sellers receiving multiple offers routinely ask about financing — a pre-approval letter demonstrates you're a serious, qualified buyer. A pre-qualification doesn't carry the same weight.
Beyond the offer situation, pre-approval protects you against overpaying for a home you ultimately can't finance. The last thing you want is to have an offer accepted and then discover the lender won't fund at the price you offered.
How Long Pre-Approval Takes With a Broker
- Documents in by morning → pre-approval letter same day or next day
- Rate held for 90–120 days
- One application, multiple lenders — Deane manages the process
- No need to apply to multiple banks individually (which would create multiple hard inquiries)