What Is A Mortgage Pre-Approval For

Pre-Approve & Test Your Mortgage Application

Video Transcript

A pre-approval is dry-run for your eventual final mortgage application, a theoretical loan approval based on a realistic home at a realistic price, using your actual credit information.

Your income, your debts, your credit score, and the size of your down payment. Your mortgage pre-approval states that if you bought a home at price point whatever, a lender would approve your loan to get it.

And you can take that pre-approval to the bank because getting pre-approved means that your loan application’s already been reviewed – in full – save for you having a contract to buy an actual, physical home.

Pre-approvals give a Yes or No answer to the question “Can I get approved to buy a home at this particular price?”

And, that’s not just helpful information for you – it’s helpful information for whomever owns the house you’re going to buy someday, because no home seller is going to accept your offer unless they know you can afford to buy their house.

That’s what your pre-approval is for. It’s peace of mind that shows you’re serious about buying a house, and that your interest should be taken seriously, too.

Ask us your questions about pre-approvals anytime — we’re help to help you.

Happy homebuying.

Dan Green

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

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