What is a mortgage pre-approval?
A mortgage pre-approval is a letter from a lender saying it's tentatively willing to lend you money, up to a certain loan amount. The letter is based on assumptions. It isn't a guaranteed loan offer.
To pre-approve you, lenders look at your income, assets, debts and credit record. Some lenders base the letter only on what you tell them. Others ask for documents up front.
Not every lender uses the word pre-approval. Some lenders offer only a pre-qualification instead.
Source: Consumer Financial Protection Bureau, "Get a preapproval letter"
Why do sellers want to see a pre-approval letter?
Sellers want to see a pre-approval letter because it shows you're likely to be able to get financing. Sellers often ask for one before they accept an offer on a house.
A pre-approval letter helps you shop for a home. It doesn't give you enough information to tell which lender has the best deal.
Getting pre-approved doesn't commit you to using that lender for your loan.
Source: Consumer Financial Protection Bureau, "Get a preapproval letter"
Does a pre-approval include a credit check?
A pre-approval usually includes a credit check. Lenders typically check your credit before they issue the letter.
A pre-approval letter can also have an expiration date. For both reasons, many people wait to get one until they're ready to shop for a home. Getting one early can help you spot credit problems in time to fix them.
If a lender uses your credit score to turn down a pre-approval request, it must send you a notice. The notice shows the credit score it used and tells you how to get a free copy of your credit report.
Sources: Consumer Financial Protection Bureau, "Get a preapproval letter"; Consumer Financial Protection Bureau, "What's the difference between a prequalification letter and a preapproval letter?"
Is a pre-approval the same as a loan application?
A pre-approval isn't the same as applying for a loan. The letter says a lender is willing to lend to you, pending more checks of the details.
A lender must give you a Loan Estimate once you've given it six pieces of information. They are your name, your income, your Social Security number, the property address, an estimate of the property's value and the loan amount you want.
The lender then has until the third business day after it gets your application to deliver or mail the Loan Estimate. A Loan Estimate isn't an approval either. When you get one, the lender hasn't yet approved or denied your application.
Sources: Consumer Financial Protection Bureau, "Get a preapproval letter"; Consumer Financial Protection Bureau, "What information do I have to provide a lender in order to receive a Loan Estimate?"; Consumer Financial Protection Bureau, "§ 1026.19 Certain mortgage and variable-rate transactions."; Consumer Financial Protection Bureau, "What is a Loan Estimate?"
What happens after a pre-approval?
After a pre-approval, the lender still has to confirm the details before it makes a loan. The CFPB says that, in general, your lender must check your income, job, assets, debts and credit history, and keep records of them. That's how the lender decides whether you can repay the loan.
The lender may also need an appraisal of the home. An appraisal is a written document that shows an opinion of how much a property is worth.
The CFPB suggests asking the lender what assumptions it made for your pre-approval. It also suggests asking if anything about your situation could lead to a denial later. The same goes for anything that could raise your interest rate or loan costs.
Sources: Consumer Financial Protection Bureau, "Understand the different kinds of loans available"; Consumer Financial Protection Bureau, "What are appraisals and why do I need to look at them?"; Consumer Financial Protection Bureau, "Get a preapproval letter"
Where these facts come from
- Consumer Financial Protection Bureau, "Get a preapproval letter". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "What's the difference between a prequalification letter and a preapproval letter?". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "What information do I have to provide a lender in order to receive a Loan Estimate?". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "§ 1026.19 Certain mortgage and variable-rate transactions.". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "What is a Loan Estimate?". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "Understand the different kinds of loans available". Opened October 27, 2026.
- Consumer Financial Protection Bureau, "What are appraisals and why do I need to look at them?". Opened October 27, 2026.
Disclaimer
These resources are general educational information and do not constitute financial, legal, or tax advice, or a commitment to lend. Texas-specific items are flagged for compliance review. Discuss your situation with Lending 11 Up and qualified professionals.