Pre-Approval

Mortgage pre-approval is a thorough evaluation of your financial status by a lender, resulting in a conditional commitment to lend up to a specific amount. Unlike pre-qualification, which is a rough estimate, pre-approval involves verifying income, assets, employment, and credit history.

A pre-approval letter strengthens your position as a homebuyer by showing sellers that you are a serious, qualified buyer. In competitive markets, sellers often prefer or require pre-approved buyers. The pre-approval typically remains valid for 60 to 90 days.

To get pre-approved, you will need to provide recent pay stubs, W-2s or tax returns for the past two years, bank and investment statements, identification, and authorization for a credit check. The process usually takes a few days to a week. Getting pre-approved from multiple lenders within a 14-day window counts as a single credit inquiry.