Pre-Approval

A conditional commitment from a lender stating you qualify for a specific loan amount based on your verified credit, income, and assets.

Pre-approval is a documented commitment from the lender, based on a full review of your credit (hard pull), income, and assets, stating you qualify for a loan up to a specified amount. Pre-approval letters strengthen offers in competitive markets. Stronger than "pre-qualification" (which is usually just a stated-income soft check). Pre-approval is contingent on property meeting standards and final underwriting approval.