Learning Library · Buying 101 · lesson 2
Pre-approval: your real budget, in writing
5 min read
What pre-approval actually is, why sellers require it, and how to get one without hurting your credit.
Pre-qualification vs. pre-approval
A pre-qualification is an estimate based on what you tell a lender. A pre-approval is a underwritten look at your actual documents — pay stubs, W-2s, bank statements, credit. In this market, listing agents treat offers without a pre-approval letter as incomplete. Get the real one.
What lenders look at
Shopping multiple lenders within a short window (roughly two weeks) counts as a single credit inquiry for scoring purposes, so compare two or three. Rate matters, but so do lender fees and — critically in a competitive offer — the lender's reputation for closing on time.
- Income and its stability (two years of history is the comfortable standard)
- Debt-to-income ratio — your monthly obligations vs. gross income
- Credit score and history — mid-600s opens most doors; higher improves your rate
- Assets — down payment, closing costs, and reserves left after closing
Between pre-approval and closing: change nothing
Lenders re-verify before closing. New car loans, new credit cards, large unexplained deposits, or a job change can all stall or sink a mortgage at the worst possible moment. Keep your financial picture boring until you have keys.
Quick answers
How long does a pre-approval last?
Typically 60–90 days, and refreshing it is quick. Get it before serious touring — homes have a way of appearing the weekend you're not ready.
Does pre-approval commit me to that lender?
No. You can switch lenders any time before you apply for the actual loan — and even after, though switching late can cost you time.
Educational content only — not legal, tax, or financial advice. Program details, rates, and tax figures change; verify current specifics before relying on them. The Woods Team · Berkshire Hathaway HomeServices Fox & Roach, REALTORS® · Equal Housing Opportunity.