Mortgage Pre-Approval
A mortgage pre-approval is a lender's written statement that, based on your verified income, assets, credit report, and debts, it is prepared to lend you up to a stated amount. It is the serious version of a pre-qualification, which is only a quick estimate from self-reported numbers with no documents checked.
Getting pre-approved involves a credit pull and paperwork — pay stubs, W-2s or tax returns, and bank statements. In return you get a letter, typically valid for 60-90 days, that tells sellers your offer is backed by a lender. In competitive markets many agents won't submit an offer without one.
A pre-approval is not a guarantee: final approval still depends on underwriting and an appraisal of the specific home. It also isn't a budget — lenders approve up to your debt-to-income limit, which can be more than is comfortable to actually spend on PITI every month.
The step-by-step process is covered in our guide How to get pre-approved for a mortgage, and you can sanity-check any approved amount against your income on the affordability pages.
Related terms: Underwriting, Debt-to-Income Ratio (DTI), Appraisal.
