What is a pre-approval and why does it matter?
A pre-approval is a lender's review of your documented income, assets and credit that supports a specific loan amount. It helps you shop in the right price range and makes an offer more credible to a seller.
Buying · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
Pre-approval is not a loan commitment. Final approval depends on underwriting, the property, the appraisal and program requirements.
Getting the review done before you shop seriously gives you time to address issues instead of discovering them under contract.
Your pre-approval amount is a ceiling, not a target. The payment you are comfortable with matters more.
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Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.