Pre-Approval
Definition
A pre-approval is a lender's written confirmation of the mortgage amount and rate you likely qualify for, based on verified income, debts, and credit, before you make an offer on a property.
How it works
A pre-approval is stronger than a quick online pre-qualification. A pre-qualification is an estimate from numbers you type in yourself. A pre-approval means a lender has reviewed real documents — income confirmation, credit, and your existing obligations — and has issued a specific amount and a held rate.
The rate hold is the practical benefit. Most pre-approvals hold your rate for 90 to 120 days, so if rates rise while you shop, you keep the lower rate; if rates fall, you get the better rate at funding. It also tells you your real budget before you fall in love with a listing.
A pre-approval is not a final approval. The lender still has to approve the specific property, review the purchase contract, and in most cases order an appraisal. Keep your finances stable between pre-approval and closing: a new car loan or a job change can undo the approval.
Quick facts
- Typically holds your rate for 90–120 days.
- Requires verified income, credit, and debt documentation.
- Final approval still depends on the property and updated finances.
Put this into practice
Still have questions about pre-approval?
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