The Buyer has provided verbal and sometimes hard copy information regarding their income, expenses, assets and liabilities. Their credit report may also have been obtained. A Pre-Qualified buyer, at best, can provide the seller with a letter stating an opinion of what they can afford. This has no real value to a prospective seller.
The Buyer has provided written evidence of income, expenses, assets, liabilities and credit. All information has been verified. As a result, much of the paperwork for the buyer's loan has been completed. The Buyer is able to furnish a pre-approval letter (from the lender) to the seller and Listing Broker stating that they are financially capable of purchasing a property. This buyer will be able to engage in a negotiation that would be taken seriously.