Process
What pre-approval really means (and why sellers care)
A pre-approval is a lender’s conditional review of your income, assets and credit. Here’s what it covers, what it doesn’t, and how to keep it valid while you shop.
Dana Whitfield
NMLS #XXXXXX
When you make an offer, the seller wants to know one thing: can this buyer actually close? A pre-approval letter is how you answer that question before anyone asks.
Pre-qualification vs. pre-approval
A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval goes further. A loan officer reviews your credit and documents, then confirms the price range and loan type you’re likely to qualify for.
What you’ll need
Recent pay stubs and two years of W-2s or tax returns
Two months of bank and investment statements
A photo ID and permission to check your credit
Details on any gift funds or down payment assistance
Keeping your pre-approval valid
Avoid opening new credit cards, financing a car, or moving large sums of money until you close. Changes like these can affect your approval. If something changes, tell your loan officer early.
A pre-approval is not a commitment to lend. Final approval depends on underwriting, the appraisal and the property.
General information
This guide is general education, not financial, legal or tax advice. Talk with a licensed loan officer about your situation.