Mortgage pre-approval is a conditional commitment from a lender to loan you a specific amount. It's based on verified information — your credit, income, assets, and debts — not just a rough estimate. A pre-approval letter tells sellers you're ready to buy and gives you a clear budget for your home search.
| Feature | Pre-Qualification | Pre-Approval |
|---|---|---|
| Information Used | Self-reported | Verified documents |
| Credit Check | Usually not | Hard pull |
| Accuracy | Rough estimate | Reliable amount |
| Weight with Sellers | Minimal | Strong signal |
Pay Stubs
Last 30 days of pay stubs for all borrowers
W-2s & Tax Returns
2 years of W-2s and federal tax returns
Bank Statements
2 months of bank statements (all pages, all accounts)
ID & SSN
Government-issued photo ID and Social Security number
Employment Verification
Contact info for current employer
Additional Income
Bonus, commission, overtime proof if applicable
Pre-approval letters typically expire after 60-90 days. After expiration, you'll need to re-apply with updated documents. If rates have changed significantly, your approved amount may change. If your pre-approval expires before you find a home, the lender can typically refresh it quickly if nothing in your financial picture has changed.
Credit Score: Higher score = more borrowing power and better rate. 740+ gets best terms.
Debt-to-Income Ratio (DTI): Max 45-50% depending on loan type. Monthly debts ÷ gross monthly income.
Down Payment: Larger down payment = larger pre-approval (less risk for lender).
Cash Reserves: 2-6 months of PITI in reserve improves approval strength.
Employment History: 2 years of stable employment preferred. Job changes within the same field are usually fine.