What Is Mortgage Pre-Approval?
Mortgage pre-approval is a lender's conditional statement of how much it is willing to lend a borrower, based on a review of verified income, assets, debts, and credit. It is more detailed than pre-qualification and is often requested by sellers as evidence that a buyer can obtain financing.
What It Is Not
Pre-approval is not a final loan approval; final approval depends on the property appraisal, updated documents, and underwriting.
Pre-Approval vs. Pre-Qualification
Pre-qualification is usually an estimate based on information the borrower provides, without full verification.
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Home Affordability Calculator
Find the home price range you can realistically afford.
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Debt-to-Income (DTI) Ratio Calculator
The same ratio lenders use to evaluate your loan application.
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Mortgage Calculator
Estimate your monthly mortgage payment including taxes, insurance, and PMI.
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🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Assessed Value
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.