A mortgage pre-approval is a written commitment from a lender stating how much they're willing to lend you, based on a full review of your income, assets, credit, and debts. It's stronger than a pre-qualification, which is just a rough estimate.

Sellers and real estate agents take pre-approved buyers far more seriously. In competitive markets, a pre-approval letter is essentially required to make an offer. It tells the seller you can actually close.

Pre-approvals typically expire in 60–90 days, since credit reports and rates change. If you don't find a home in time, you can usually refresh the pre-approval with updated documents.

Related terms

Process

Pre-Qualification

A quick informal estimate of how much you might qualify for, based on self-reported information.

Learn More
Process

Underwriting

The lender's process of verifying your finances, the property, and the loan terms before approval.

Learn More
Underwriting

Credit Score

A 3-digit number summarizing your credit history. Higher scores get better mortgage rates.

Learn More
Process

Loan Estimate

The standardized 3-page disclosure every lender must give you within 3 business days of applying.

Learn More

Have more mortgage questions?

Talk to a 4Homes mortgage expert who can walk you through your situation and find the best loan for you.