both · Philadelphia & Montgomery
Pre-approval: your real budget, in writing
What pre-approval actually is, why sellers require it, and how to get one without hurting your credit.
In this lesson
Pre-qualification vs. pre-approvalWhat lenders look atBetween pre-approval and closing: change nothingHow long does a pre-approval last?Does pre-approval commit me to that lender?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.
How long does a pre-approval last?
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?
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.
General education, not legal, tax or financial advice. Your contract and circumstances matter. Confirm current requirements with your lender, settlement professional or qualified adviser.