Answers by Holly Matson

As a Realtor, I've found that many sellers and listing agents view a pre-qualification letter differently than a fully documented pre-approval. A pre-qualification based solely on a conversation can be enough to submit an offer in some situations, but in a competitive market, a verified pre-approval often carries more weight because it shows the lender has already reviewed your financial documentation and credit history. I would encourage buyers to ask their lender exactly what type of approval they have. If it's only a pre-qualification, obtaining a full pre-approval before making offers can help strengthen your position and reduce the likelihood of surprises later in the transaction. As for credit scores, that's really a question best answered by your lender, but generally speaking, changes in credit, income, or debt can affect loan terms or purchasing power. That's another reason many buyers prefer to have everything reviewed upfront before getting under contract. Every market and seller is a little different, but from a practical standpoint, being as prepared as possible tends to make the process smoother for everyone involved.