Mortgage Pre-Approval: What It Is and Why You Need It
Getting pre-approved is one of the first steps in buying a home. It shows how much a lender may let you borrow and helps you shop with confidence.
What Is Mortgage Pre-Approval?
Mortgage pre-approval is when a lender reviews your money, credit, and debts to tell you how much you may be able to borrow for a home.
They check:
Your income
Your job history
Your savings
Your debts
Your credit score
A pre-approval gives you a price range so you don’t look at homes outside your budget.
Why Pre-Approval Is Important
Pre-approval helps you:
Know your real price range
Understand your possible monthly payment
Find credit issues early
Make stronger offers
Move faster when you find a home
Sellers and agents take you more seriously if you have a pre-approval letter.
What Documents You Need for Pre-Approval
Most lenders ask for:
Pay stubs
W-2 forms or tax returns
Bank statements
ID
Proof of any extra income
These help the lender confirm your information so your pre-approval is accurate.
Hard Pull vs. Soft Pull (Simple Explanation)
Soft Pull
Doesn’t affect your score
Used by apps like Credit Karma
Shows an estimate, not a full picture
Hard Pull
Shows on your credit report
May lower your score a little
Required for a real pre-approval
Important: Apps use VantageScore, but lenders use older FICO scores.
This is why your lender score may look different.
Will Shopping for Rates Hurt My Credit?
No.
If you check with several lenders within 14–45 days, all mortgage inquiries count as one hard pull.
This lets you compare rates without hurting your score.
How Pre-Approval Affects Your Budget
Your pre-approval helps you see:
Your price range
Your estimated monthly payment
What loan types you qualify for
How much you need for a down payment
It keeps you from falling in love with a home you can’t afford.
How Long Pre-Approval Lasts
Most pre-approvals last 60 to 90 days.
If yours expires, you can update your documents and get a new one quickly.
When You Should Get Pre-Approved
Get pre-approved before you start viewing homes.
This avoids surprises and helps you move fast when you’re ready.
Common Myths About Pre-Approval
“I need perfect credit.”
Many buyers get pre-approved with scores in the low 600s.“I can only use one lender.”
You can compare offers.“Pre-approval guarantees a loan.”
It’s a strong start, not a final approval.
Summary
Mortgage pre-approval shows how much you can borrow and makes you a stronger buyer. Lenders look at your income, debts, credit score, and savings. Getting pre-approved early makes the homebuying process easier and clearer.
Try the Home Readiness Check™ or visit the Buying Basics section for more simple guides.