Pre-qualification vs. full credit approval: What are the differences?

The biggest difference between a pre-qualification and a full credit approval is that lenders will check your credit for a full approval. This means that you will have a credit inquiry on your credit report, which can impact your score. With a full approval, you know exactly what your rate is with that lender and the amount you’re able to borrow. With a pre-qualification, there is no impact to your score and you’re given an idea of what your rate and terms could be, but it’s not guaranteed.