A lender's conditional commitment to lend you a specific amount, based on a verified review of your credit, income, and assets.
Full Definition
A mortgage pre-approval is more rigorous than pre-qualification. The lender pulls your credit, verifies your income with pay stubs and W-2s, confirms your assets with bank statements, and issues a conditional commitment letter stating the loan amount you qualify for. Pre-approval letters typically expire after 60–90 days. In competitive markets, sellers often won't entertain offers without one. Pre-approval is not a final loan commitment — it's conditional on the property appraisal, title clearance, and no material changes in your financial situation before closing. A formal commitment letter or clear-to-close is the final step before funding.
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