On this page
Mortgage Pre-Approval
5 Mins read

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

Holo Blog

You may have heard the terms pre-approval and pre-qualification. Both terms may sound similar, but they have distinct differences that are important to understand. In this article, we will discuss the differences between pre-approval and pre-qualification when applying for a mortgage in the UAE.


Pre-qualification is a quick assessment of your financial situation that provides an estimate of how much you could borrow. It is typically done using basic financial information such as your income, debts, and assets. Using a mortgage calculator can also help you understand how much you could borrow.

Pre-qualification is a useful first step for those who are just starting their house-hunting journey and want to get a general idea of their borrowing capacity and which mortgage products are available to them.


Pre-approval is a more in-depth process that involves a lender reviewing your credit history, income, assets, and debts to determine how much they are willing to lend you.

Pre-approval requires documentation and a credit check, which means it provides a more accurate estimate of your borrowing capacity. It also shows that you are a serious buyer, which can help you stand out from other buyers in a competitive market.

Now that we understand the differences between pre-approval and prequalification, which one should you obtain for your mortgage in the UAE? 

In most cases, pre-approval is necessary before you can make an offer on a property. It provides a more accurate assessment of your borrowing capacity and makes you a more attractive buyer to sellers. Pre-approval also gives you a better idea of what your monthly mortgage payments will be, which can help you determine your budget for a home purchase.

When you apply for pre-approval, your lender will consider several factors to determine your eligibility, including your credit score, employment history, and debt-to-income ratio. Your lender may also request documentation such as pay slips, bank statements, and tax returns to verify your income and assets.

It's important to note that pre-approval is not a guarantee of a mortgage loan, but rather an indication that you are eligible to receive a mortgage loan of a certain amount. You will still need to go through the full underwriting process, which includes a property valuation and a final credit check before you can receive your Final Offer Letter (FOL) for a mortgage loan.

At Holo, we offer digital mortgage services that can help you submit your application for a mortgage loan and obtain pre-approval quickly and easily, so you can focus on finding your dream home in the UAE. Our top mortgage advisors will walk you through every stage of the process. And using Holo is 100% free!

Get started for free.

Want to explore the ins and outs of applying for a mortgage in the UAE? Our mortgage FAQs have the answers!

Need help with your property search?
Share this post