What does pre-approval mean?

March 27, 2013 By Hatch Mortgages

It means you’ve got a guaranteed interest rate from a lender for a specified period of time (usually 60 to 120 days) on a specified amount of money. It’s not a guarantee that you’ll get financing. Your pre-approval is subject to certain conditions: determining that the house meets the lender’s criteria, confirming your employment and income and securing a down payment, among other things. Most real estate professionals want you to have pre-approval before you start looking for a home. This way, they can focus on showing you places you can afford—on approval.