How does mortgage pre-approval work and why do I need it?

Short answer: Bank agrees to lend up to a set amount. Lasts 60-90 days. Shows sellers you are serious.

What this actually means in plain English

Pre-approval is when a bank checks your finances and agrees to lend you up to a certain amount. It is not a guarantee, but it shows sellers you are serious. It lasts 60-90 days. You need it before making an offer. Without it, sellers may not consider your offer.

Key Facts

Pre-approval = conditional lending commitment
Valid for 60-90 days typically
Requires proof of income, savings, and ID
Not a final guarantee — property must also meet criteria
Most sellers require pre-approval with offers

Example

Income: $85,000

Deposit: $30,000

Pre Approval Amount: $570,000

Total Budget: $600,000

Validity: 90 days

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