What is Pre-Approval?

Pre-Approval is having a lender or mortgage broker review your finances and specify in writing the amount they are prepared to lend to you in order to purchase a property.


Should I get Pre-Approved?

Yes, when you are ready to purchase a property it’s a good idea to get pre-approved.

  • You will know which homes you can afford and not waste time on ones above what you can afford
  • Your offer will be quicker and easier to submit when you find a home
  • Some real estate companies will require pre-approval to work with you
  • You will need pre-approval to make an offer on a bank-owned property (REO)
  • You will have more time to research and shop for the best mortgage value, see some research here.


What is the difference between Pre-Approval and Pre-Qualification?

  • Pre-Approval is a thorough review of your finances by a lender or mortgage broker and their approval, via letter, of a loan amount they are willing to lend to you to purchase a property.
  • A pre-qualification is based on a conversation about your finances with a lender or mortgage broker without verifying your finances. This conversation may be important at the beginning of the process to determine a range in what you are able to afford to borrow and what mortgage packages are available.

If you are ready to purchase a home, follow-through with the pre-approval process.

 Why would I wait to get Pre-Approved?

 If you are not ready to purchase a home you may want to wait to get pre-approved. Pre-approval letters are normally good for between 60-90 days.

 If you are looking for a short sale these sales normally take a longer time, so you may want to time your pre-approval in consultation with your agent and lender.


We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info