Preapproval. Know where you stand.
Understand prequalification, conditional preapproval and the financial information lenders may review.
Talk through your optionsSimilar words, different processes
Prequalification and preapproval describe ways a lender may assess whether you could qualify for a mortgage. Lenders use the terms differently, and the amount of verification can vary. Ask what was actually reviewed rather than relying on the label alone.
A preapproval letter can help support a purchase offer, but it is not a guaranteed loan offer or a final commitment to lend.
What may be reviewed
- Income, employment and business information.
- Credit history and recurring debt obligations.
- Assets available for down payment, closing costs and reserves.
- The intended loan amount, property type and occupancy.
- Information needed to resolve unusual items or inconsistencies.
Keep it current
A change in income, employment, debt, assets or the property can affect the result. Ask how long the letter remains valid, what conditions apply and what is still needed before final approval.
Prepare for your conversation
Bring the documents you have and be candid about the parts of your finances that feel complicated. An early discussion is more useful than discovering a missing record after you are under contract.
FURTHER READING
CFPB: Prequalification and preapproval CFPB: What is a Loan Estimate?General educational information. Your loan’s requirements and terms must be confirmed for your application. Content reviewed November 4, 2026.