Mortgage Pre-Approval

Mortgage pre-approval is the process of getting conditional approval from a lender for a mortgage before you start looking for a home.

It involves the lender assessing your financial situation, including your income, credit score, and debt-to-income ratio, to determine how much you can borrow.

Getting pre-approved for a mortgage allows you to know how much you can afford, which helps you narrow down your home search. It also gives you an advantage when making an offer on a property, as sellers will see you as a serious buyer.

• Related Terms: Mortgage, Down Payment, Interest Rate, Closing Costs