Before you fall in love with a home, find out how much a lender will actually lend you. A mortgage pre-approval is a lender’s conditional commitment to lend you a specific amount, based on a review of your income, debts and credit. It sets your budget and shows sellers you are a serious buyer.
Pre-qualification vs pre-approval
| Pre-qualification | Pre-approval | |
|---|---|---|
| Information | Self-reported | Verified with documents |
| Credit check | Often soft or none | Usually a hard check |
| Strength | Rough estimate | Stronger signal to sellers |
| Time | Minutes | Days |
Documents you usually need
- Photo ID and proof of address.
- Recent payslips and employment details.
- Tax returns or tax forms, especially if self-employed.
- Bank statements showing savings for your down payment and closing costs.
- Details of debts, such as student loans and car loans.
- Information about gifts toward your deposit, if any.
How lenders decide
- Credit score affects approval and your rate.
- Debt-to-income ratio shows how much of your income goes to debts.
- Employment history and income stability.
- Down payment and reserves.
Check how lenders count your existing debts in our guide to buying a house with student loans, and test payments with our Mortgage Calculator.
How to get a mortgage pre-approval
- Check your credit reports and fix any errors.
- Gather your documents in one folder.
- Compare at least two or three lenders, including credit unions or brokers.
- Apply for pre-approval within a short window; multiple mortgage inquiries in a short period are often treated as one for scoring.
- Review the pre-approval letter, including the amount, loan type and expiry date.
How long does a pre-approval last?
Many pre-approvals last around 60 to 90 days. If yours expires, the lender will update your information. Avoid changes that could affect approval while you shop, such as switching jobs, opening new credit or making large unexplained deposits.
Pre-approval amount vs what you should spend
Your pre-approval shows the maximum a lender will lend, not what is comfortable. Leave room for savings, maintenance and life. Read our guide on how much house you can afford and compare buying with renting using our Rent vs Buy Calculator.
Tips to strengthen your offer
- Include your pre-approval letter with every offer.
- Ask your lender for a letter matching the offer price, not your maximum.
- Have your down payment ready and documented.
- Respond quickly to lender requests during underwriting.
Country notes
UK buyers often get an Agreement in Principle (AIP), similar to pre-approval. Canadian lenders offer pre-approvals with rate holds, often for 90 to 120 days, and apply a stress test. In Nigeria, primary mortgage banks and the National Housing Fund have their own eligibility requirements; check documentation needs early.
How to strengthen your application before pre-approval
A few months of preparation can improve your mortgage pre-approval amount and rate:
- Pay down credit card balances to lower utilization.
- Avoid opening new credit accounts.
- Keep your job stable if possible.
- Season your savings: keep deposit funds in your account for a few months.
- Document any gifts with a signed gift letter.
- Correct errors on your credit reports.
Even a modest score improvement can lower your rate, saving thousands over the life of the loan.
For official, up-to-date guidance, see the CFPB’s home-buying guide.
Frequently asked questions
Does mortgage pre-approval hurt my credit?
It usually involves a hard inquiry, causing a small temporary dip. Shopping several lenders in a short window limits the impact.
Can I be denied after pre-approval?
Yes, if your finances change, the property does not meet requirements or verification reveals issues.
Is pre-approval free?
Many lenders do not charge for pre-approval, but some may charge application or credit report fees.
Mortgage pre-approval: key takeaways
- Pre-approval verifies your finances and sets your budget.
- Gather documents and check your credit first.
- Compare several lenders within a short window.
- Borrow less than the maximum you are approved for.
Last reviewed: October 2026. This article is general education, not personal financial, tax or legal advice. Rules, rates and limits change, so check official sources or speak to a qualified professional before making decisions. See our Financial Disclaimer.