Why agents care
A pre-approval letter strengthens offers and shows a buyer is serious. Agents who move leads from calculator estimates to pre-approvals help their buyers compete.
Glossary term
Pre-approval
A pre-approval is a lender's conditional statement of how much it's willing to lend, issued after checking credit and reviewing documentation of income and assets. It's stronger than a pre-qualification and is what most sellers expect with an offer. Final approval still depends on the property, appraisal and underwriting.
Example
Example: a buyer whose estimate was $380,000 gets pre-approved for $395,000 after the lender verifies income, so their search range can move up a little.
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Questions by topic
Pre-approval: common questions
How long does a pre-approval last?
Often 60 to 90 days, depending on the lender. Updated documents may be needed after that.
Can a pre-approval be withdrawn?
Yes, if the buyer's finances change or the property doesn't meet requirements.
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