Mortgage Preapproval
A mortgage preapproval is a lender's conditional commitment to lend you a specific amount, based on a review of your finances and credit. It's stronger than a prequalification and tells sellers you're a serious, ready buyer — often required before an offer is taken seriously.
Prequalification and preapproval are not the same thing, though the words are used interchangeably in advertising. A prequalification is an estimate based on figures you state; a preapproval involves documented income, a credit pull, and an underwriter, which is why sellers take it seriously and prequalification letters carry little weight. Preapproval typically lasts 60 to 90 days before the credit report goes stale. It is still not a guarantee — final approval depends on the appraisal and on your circumstances remaining unchanged, which is why opening a car loan or a store card between preapproval and closing is the classic way to lose a deal. Getting it early also surfaces credit problems while there is time to fix them.
Put it to work
Home Affordability Calculator
How much house can you afford? Get a realistic max price from your income, debts, and down payment using the 28/36 rules lenders actually apply.
Debt-to-Income Ratio Calculator
Calculate the debt-to-income (DTI) ratio mortgage lenders use to size your approval — front-end and back-end — and see how much room you have before 36%.