Mortgage glossary
Pre-approval
Definition: A pre-approval is a lender's written statement, based on a credit check and documented income and assets, that a borrower is likely to qualify for a specific loan amount and program.
To pre-approve you, a lender pulls credit and reviews pay stubs, W-2s or tax returns, and bank statements. The resulting letter shows sellers and listing agents that your financing has been checked, which matters in competitive Austin area offers. It is not a final approval: the property, appraisal and final underwriting still have to clear.
With our team, you can apply in about 10 minutes, and a pre-approval letter typically arrives within 24 hours. TBD approvals, which run a file through underwriting before you have an address, can make an offer even stronger.
Related terms
Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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