Leiman Mortgage Network
Back to Resources
January 30, 20265 min read

The Mortgage Pre-Approval Process Explained

Pre-approval is the first real step in buying a home. Here's exactly what happens, what you'll need, and why it matters.

Getting pre-approved for a mortgage is one of the most important steps in the homebuying process. It tells you exactly how much you can borrow, strengthens your offer when you find a home, and identifies any issues that need to be resolved before you can close.

Pre-Qualification vs. Pre-Approval

These terms are often used interchangeably, but they're different:

Pre-qualification is a quick estimate based on self-reported information. No credit pull, no documentation review. It gives you a rough idea of what you might qualify for, but it's not reliable enough to use when making an offer.

Pre-approval involves a full application, credit pull, and review of your income and asset documentation. A pre-approval letter tells sellers you're a serious, qualified buyer.

Always get pre-approved — not just pre-qualified.

What Happens During Pre-Approval

Step 1: Application

You complete a mortgage application (Uniform Residential Loan Application, or 1003). This covers your personal information, employment history, income, assets, and the property you're looking to purchase (or a general purchase price range if you haven't found a home yet).

Step 2: Credit Pull

We pull your credit report from all three bureaus. This is a hard inquiry and will temporarily lower your score by a few points. Multiple mortgage inquiries within a 14–45 day window are counted as a single inquiry.

Step 3: Document Review

We review your income and asset documentation:

  • W-2s and tax returns (2 years)
  • Pay stubs (30 days)
  • Bank statements (2 months)
  • Any other relevant documentation

    • Step 4: Underwriting Review

    Your file goes to an underwriter (or automated underwriting system) for review. The underwriter verifies your income, assets, and credit profile against the loan program guidelines.

    Step 5: Pre-Approval Letter

    If everything checks out, you receive a pre-approval letter stating the maximum loan amount you're approved for, the loan type, and any conditions.

    What the Pre-Approval Letter Includes

  • Your name(s)
  • Maximum loan amount
  • Loan type (conventional, FHA, VA, etc.)
  • Expiration date (typically 60–90 days)
  • Any conditions (e.g., "subject to satisfactory appraisal")

    • How to Use Your Pre-Approval

    When you make an offer on a home, you'll submit your pre-approval letter with the offer. Sellers and their agents use this to confirm you're a qualified buyer.

    In competitive markets, a strong pre-approval (especially one from a local lender who can close quickly) can give you an edge over other buyers.

    What Can Change After Pre-Approval

    Pre-approval is not a guarantee of final approval. Your loan can still be denied if:

  • Your financial situation changes (job loss, new debt, large purchases)
  • The property doesn't appraise at the purchase price
  • Title issues are discovered
  • The property doesn't meet program requirements

    • To protect your pre-approval:

  • Don't apply for new credit
  • Don't make large purchases
  • Don't change jobs
  • Don't make large deposits without documentation
  • Keep paying all bills on time

    • How Long Does Pre-Approval Take?

    With complete documentation, we can typically issue a pre-approval letter within 24–48 hours. In some cases, same-day pre-approval is possible.

    Ready to Get Pre-Approved?

    The pre-approval process is free and there's no obligation. We'll review your situation, identify the best loan programs for you, and give you a clear picture of what you can afford. Contact us to get started.