What is a mortgage preapproval?

Preapproval is a conditional promise from a bank or lender that they are willing to lend to you up to a certain amount. Preapprovals are usually valid for 90 days. In order to get pre-approved, you’ll need: 

•  Completed mortgage application – provided by your bank or lender

•  Credit check – multiple credit checks for mortgage applications don’t hurt your credit score

•  Verification of Employment, W-2s, and pay stubs – be ready to show pay stubs for the last three months

•  List of assets, debts, and bank statements – be ready to show bank statements for the last three months

•  Identification – driver’s license, passport, and possibly a social security card

•  Application fee – not all lenders charge an application fee; lenders that do will usually deduct this fee from your closing costs if you choose to close with them

Your lender will verify all your finances and give you a specific amount that you can borrow and a gauge of your interest rate. In certain cases, you may be able to lock in a rate.