What a preapproval does
A preapproval is a preliminary evaluation based on the information and documents reviewed at that time. It can help establish a shopping range and support an offer, but it is not a commitment to lend or a final approval.
What lenders commonly review
Mortgage qualification usually considers the relationship between your income, assets, debts, credit history, intended occupancy, loan program, and property details.
- Income and employment
- Credit and monthly obligations
- Assets and source of funds
- Property type and intended use
How to prepare
Use complete, current information and be ready to explain material items such as employment gaps, large deposits, recent credit inquiries, or other properties. Clear documentation reduces avoidable back-and-forth.
Questions worth asking
Ask how taxes, insurance, mortgage insurance, association dues, rate assumptions, points, credits, and closing costs affect the estimate. Also ask what could change before closing.
Keep it current
Documents, rates, debts, income, and program guidelines can change. Revisit your preapproval when your search, offer price, property, or financial picture changes.