A mortgage pre-approval is when a lender reviews your income, assets, credit, employment history, and supporting documentation and issues a written decision showing the amount you qualify to borrow. This is not a guess. It’s not a “based on what you told me” estimate. It’s a financial decision backed by documentation and underwriting standards. Most every lender will then run your data through an automated underwriting engine and call it a DU or LP. What most buyers don’t realize is that pre-approvals vary in strength. Some lenders issue automated letters after a five-minute phone call. If they do that, it’s highly unreliable and you should find another lender. Others actually analyze your file. Sellers and listing agents can tell the difference. After 40 years in lending, I can tell you this: strong pre-approvals win homes. Weak ones lose them.
Please consult your Mortgage Advisor for guidance specific to your situation before making changes.
