Getting pre-approved
A pre-approval is a lender's review, not a promise that one house will be approved.
A pre-approval is a lender's look at income, credit, and debts, ending in a letter about how much they may lend and at what kind of rate. It is stronger than a casual "you might qualify" conversation, and it is not a promise that a specific house will be approved. Rates and programs change. This is not lending advice. Ask a lender.
Why sellers ask for it
On a financed offer, the seller wants to know a lender has already reviewed the buyer. A letter does not remove the appraisal or the underwriting that happens later.
What to ask the lender
- Is this a pre-approval or only a pre-qualification?
- What documents did you review?
- How long does the letter last?
- What would change the number: a car loan, a rate lock, or a house with association dues?
The federal Consumer Financial Protection Bureau explains Loan Estimates and shopping for a mortgage at consumerfinance.gov/owning-a-home. Read that, then talk to a lender. If you are looking at Ohio Housing Finance Agency programs, start with the first-time buyer guide.
More guides: all guides. Questions: FAQ.