Preapproval is a starting point. What comes next?
Understand what a preapproval letter tells you, what it does not, and which questions to ask.
A preapproval letter can help you understand a possible borrowing range. It is still important to read the conditions behind that number.
Look past the label
Lenders do not all use prequalification and preapproval in the same way. Ask what information has been reviewed, what assumptions were used and how long the letter remains valid.
The CFPB explains the difference between these letters. Neither label, by itself, means a guaranteed loan offer.
Understand the remaining review
Ask your loan professional what still needs to be verified for your particular file and property. Keep the current letter and its conditions together so your real estate agent and mortgage contact are working from the same information.
Three useful questions:
- Which information has already been verified?
- What conditions or further reviews remain?
- When should the letter or supporting information be updated?
Keep estimates and final documents distinct
A Loan Estimate and a Closing Disclosure serve different stages of the process. The CFPB's closing-document guide describes the information a Closing Disclosure contains.
Take time to review the documents you receive and ask your provider about anything that differs from what you expected. A calculator illustration on this website is separate from these lender-issued documents.
If you are still exploring, start with the buying guide. You can also bring your questions to a consultation, without submitting a mortgage application through this site.
General educational information, not an individualized lending recommendation. Requirements vary by lender, property and circumstances. This website does not accept mortgage applications, credit authorizations or financial documents.
