A process where a lender reviews your financial situation -- income, debts, credit score, down payment -- and provides a written commitment for a specific mortgage amount at a guaranteed rate (usually held for 90 to 120 days). A pre-approval is more thorough than a pre-qualification and carries more weight with sellers.
Why It Matters
A pre-approval tells you exactly what you can afford before you start shopping, and it shows sellers you're a serious buyer with confirmed financing. Without one, you're house hunting in the dark. Get pre-approved before your first showing -- not after you've fallen in love with a house you can't afford.
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