Mortgage Prequalification
Understand the early review before you shop.
Prequalification or preapproval may help frame a possible loan range and prepare you for a purchase conversation, but neither is final approval. The result depends on what was reviewed and remains subject to complete documentation, underwriting, and property review.
Start here
What Prequalification and Preapproval Are
Lenders use the terms prequalification and preapproval differently. One lender may review basic information, while another may review credit and supporting documents before issuing a letter.
The label matters less than the work behind it. Ask what was reviewed, what assumptions remain, how long the letter is valid, and what could change the result.
Overview
What They Are Not
Neither prequalification nor preapproval is a guaranteed loan offer or final approval. Final approval depends on complete documentation, underwriting, the property, appraisal or valuation, title, homeowners insurance, program conditions, and no material adverse changes before closing.
What to know
Information Commonly Reviewed
Income and employment
Salary, hourly, commission, self-employment, retirement, rental, and other income may be reviewed differently.
Assets and cash to close
Review available down payment, closing costs, gift funds, deposits, and reserves.
Credit and debts
Monthly debts, credit history, and authorization for any credit review can affect the early assessment.
Property details when known
A specific property is not always needed early, but property type, occupancy, taxes, insurance, and HOA dues can change the result.
What to know
Factors That Can Change the Result
Income, employment, debt, credit, assets, interest rates, property details, insurance, appraisal, title, and program guidelines can change the available amount, loan structure, or final approval outcome.
What to know
Secure Next Step
Use the secure application portal when you are ready to provide application information or financial documents. Do not send Social Security numbers, bank statements, tax returns, account numbers, passwords, or identification documents through ordinary email.
FAQs
Questions worth answering before you decide.
Is prequalification a guarantee that I can buy the home?
No. It is an early assessment based on assumptions and the information reviewed. Final approval depends on the complete borrower and property file.
Does prequalification affect my credit?
It depends on the process and whether a soft or hard credit inquiry is used. Ask what type of credit review will occur before authorizing it.
How long does a preapproval letter last?
Expiration periods vary by lender and market conditions. Income, assets, credit, employment, rates, and program guidelines may need to be updated.
Should I get preapproved before finding a real estate agent?
Either order can work, but a financing review before serious shopping can help establish a budget and identify issues.
Can the approved amount change?
Yes. Changes in income, employment, debt, credit, assets, interest rates, property, insurance, appraisal, or program guidelines can change the available amount or terms.