Mortgage Pre-Approval: What It Is and How to Get It
5 min read · by the FindLocalBrokers team
In a competitive market, sellers barely read offers that lack a pre-approval letter. Here's what pre-approval actually is, how to get a strong one, and how not to lose it before closing.
Three levels of "approved" — know which you're holding
- Pre-qualification: an estimate based on numbers you state, often unverified. Fine for early budgeting; carries little weight with sellers.
- Pre-approval: the lender has pulled your credit and reviewed income and asset documents. This is the standard letter that makes offers credible.
- Underwritten pre-approval: a full underwriter review before you shop, leaving only the property-related items. The strongest letter — in multiple-offer situations it lets you compete nearly like a cash buyer.
Documents to gather
- Recent pay stubs (about 30 days) and W-2s for two years
- Two years of tax returns — essential if you're self-employed
- Two months of bank and asset statements, all pages
- Photo ID; plus program-specific items like a VA Certificate of Eligibility
Underwriters trace money like auditors: large deposits that aren't payroll need a documented source. Gift funds need a gift letter. Getting these explanations in early prevents week-three surprises.
What the letter says (and what sellers read)
Your letter shows a maximum loan amount, loan type and expiration. Two tactical notes: you can request a letter written to your offer price rather than your maximum, so you don't broadcast your ceiling in negotiations; and a locally recognized broker or lender's name on the letter can itself add credibility with listing agents.
Keeping your approval alive
Pre-approval is a snapshot; underwriting re-verifies before closing. Until you have keys: no new credit cards or car loans, no job changes without telling your lender, no large unexplained transfers, and keep paying every bill on time. Boring finances close houses.
Approved for more than you should spend?
Lenders approve to a debt-ratio ceiling; they don't budget your life. Decide your own comfortable monthly payment — including taxes, insurance and upkeep — and shop below the ceiling if it's above that. A good local broker can get you pre-approved in a day or two and structure the letter to fit your offer strategy.
Frequently asked questions
Does getting pre-approved hurt my credit score?
It requires a hard inquiry, which typically affects scores by only a few points. Multiple mortgage inquiries within a short shopping window are treated as one inquiry by scoring models, so comparing several lenders does not multiply the impact.
How long does a mortgage pre-approval last?
Usually 60 to 90 days, tied to the age of your credit report and documents. If it expires before you find a home, the lender refreshes your documents and re-issues it — a quick process compared with starting over.
Can I be denied after being pre-approved?
Yes. Pre-approval is based on your finances at that moment. New debt, job changes, missed payments, large unexplained deposits, or appraisal and property issues can all sink a loan after pre-approval — which is why the golden rule is to change nothing financial until closing.
Talk to a local expert
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More guides
First-Time Homebuyer's Mortgage Guide: Step by Step · Mortgage Broker vs. Bank: Which Should You Use? · How to Choose a Mortgage Broker: 9 Questions to Ask · How Do Mortgage Brokers Get Paid? (Are They Really Free?)