What is a mortgage pre-approval?
A pre-approval is a lender’s review of your finances that estimates how much you may be able to borrow. It typically involves checking your credit and reviewing income and assets, then issuing a letter you can show sellers. It’s a stronger signal than a quick estimate because it shows a lender has actually looked at your numbers.
Why does a pre-approval matter when buying?
A pre-approval matters because it tells sellers you’re a serious, ready buyer, which can make your offer more competitive. It also gives you a realistic budget so you shop with confidence instead of guessing. In busy markets, many sellers won’t even consider an offer without one. It’s one of the most useful first moves you can make.
What’s the difference between pre-approval and pre-qualification?
A pre-qualification is a quick estimate based on information you share, useful for getting a ballpark early. A pre-approval goes further: the lender verifies your credit, income, and assets, so it carries more weight with sellers. Think of pre-qualification as a starting point and pre-approval as the stronger, documented version you bring to an offer.
What do you need from me to get pre-approved?
Usually I’ll ask for recent income documents like pay stubs or tax returns, bank or asset statements, and your permission to review your credit. If you’re self-employed, I’ll look at your business returns too. The cleaner and more organized these are, the faster we move. I’ll give you an exact checklist so nothing’s a guessing game.
Does getting pre-approved hurt my credit?
A pre-approval typically involves one hard credit inquiry, which usually has a small, temporary effect on your score. Shopping with multiple lenders in a short window is often treated as a single inquiry for scoring purposes. I’ll always tell you before anything touches your credit, so there are never surprises along the way.
How long is a pre-approval good for?
A pre-approval is generally valid for a limited window, often around 60 to 90 days, because your finances and rates can change. If it expires while you’re still shopping, it’s usually quick to refresh with updated documents. I’ll keep an eye on the timing so your letter stays current when you’re ready to make an offer.