Mortgage Pre-Approval

A pre-approval is an initial assessment of how much mortgage you may qualify for based on information such as income, debts, credit and down payment. It can also include a rate hold with some lenders. It is not the same as a final approval of a specific property.

A pre-approval gives you a realistic purchase range, helps identify documentation or credit issues early, and lets your realtor know you have started the financing process. It can reduce the risk of making offers far outside your comfortable or qualifying range.

No. Final approval still depends on updated borrower information, verification of documents, the purchase agreement, the property and the lender's underwriting criteria at the time of the application.

It depends on the lender. Rate holds and pre-approval periods commonly have a specific expiry date, so I will confirm the exact period with you when your pre-approval is arranged.

Yes. Changes to interest rates, income, debts, credit, down payment, employment or the property can affect qualification. Avoid taking on new loans, co-signing debts or making major credit changes before closing without discussing the impact first.

Usually not. A pre-approval can be completed before you find a property, although a specific property must still be reviewed and approved before a mortgage can be finalized.