The loan process
Preapproval
In short
A preapproval is a lender's conditional review of your finances estimating what you may borrow. It's stronger than a prequalification but isn't final approval.
A preapproval is a lender's assessment, based on documented income, assets, and a credit check, of how much you may be able to borrow and on what general terms. It carries more weight with sellers than a quick prequalification because it rests on verified information.
It is still conditional. A preapproval isn't a commitment to lend or a guarantee of a specific rate; the loan must still clear full underwriting, the property must appraise and be insurable, and the conditions must be met.
For a buyer, a preapproval mainly does two things: it sharpens your price range and it makes an offer credible. Both are reasons to get one before shopping seriously.
Related
Current as of August 2026.