A mortgage pre-approval is a lender's verified estimate of how much you can borrow and at what rate, usually with a rate hold of 90 to 120 days. It is stronger than a pre-qualification and helps you shop with confidence. Estimate your budget first with our mortgage calculators.
A pre-approval confirms your borrowing power after the lender verifies your income, down payment and credit, and it locks a rate for about 90 to 120 days. It is deeper than a pre-qualification but is not a guarantee — final approval depends on the property and an appraisal. You are qualified at the stress-test rate: the higher of your contract rate plus 2% or 5.25%. This is not financial advice.
People use these terms loosely, but they are not the same. A pre-qualification is a quick, informal estimate: you tell a lender your income and debts and they ballpark what you might borrow, with little or no verification. A pre-approval goes further — the lender pulls your credit, reviews your documents, and issues a rate hold. Because it rests on verified information, a pre-approval gives you a firmer budget and carries much more weight when you make an offer, signalling to sellers that you are a serious, financed buyer.
Most pre-approvals include a rate hold lasting roughly 90 to 120 days. This guarantees the quoted rate for that window while you search. If rates rise before you buy, you keep the held rate; if they fall, most lenders let you take the lower one. The hold shields you from rate risk during house-hunting. It is worth watching where rates may head — check the next rate decision (July 15, 2026) and the rate history so you understand the environment behind your hold.
To get pre-approved, be ready to prove three things: income (recent pay stubs, a letter of employment, or, if self-employed, notices of assessment and business statements), down payment (bank statements showing the funds and their source, since lenders must confirm the money is yours), and credit (the lender pulls your credit report, so know your score and clear up errors first). Having these ready speeds up the process and produces a more reliable number.
| Category | Typical proof |
|---|---|
| Income | Pay stubs, employment letter, NOAs |
| Down payment | Bank statements, gift letter if applicable |
| Credit | Credit report and score (pulled by lender) |
| Identity | Government-issued ID |
At pre-approval the lender qualifies you at the stress-test rate — the higher of your contract rate plus 2% or 5.25% — even though your real payment uses the lower contract rate. Your debt-service ratios must fit too: gross debt service (GDS) at or below 39% and total debt service (TDS) at or below 44%. Crucially, a pre-approval is not a guarantee. It is conditional on the specific property, an appraisal, and your finances staying stable, so avoid new loans or job changes before closing. First-time buyers should also read our first-time buyer guide and down payment guide to round out the picture.
A pre-approval is a lender's assessment of how much you can borrow and at what rate, based on verified income, down payment and credit. It usually comes with a rate hold that guarantees a rate for a set period while you shop for a home.
Pre-qualification is a quick estimate based on numbers you supply, with little or no verification. Pre-approval is deeper: the lender checks your documents and credit and issues a rate hold. Pre-approval carries far more weight with sellers and gives you a firmer budget.
Most rate holds run about 90 to 120 days. If rates rise during that window, you keep the held rate; if rates fall, most lenders let you take the lower rate. The hold gives you time to house-hunt without rate risk.
Yes. The lender qualifies you at the stress-test rate, which is the higher of your contract rate plus 2% or 5.25%. Your debt-service ratios must also fit, with gross debt service at or below 39% and total debt service at or below 44%.
No. A pre-approval is conditional. Final approval depends on the specific property, an appraisal, and confirmation that your finances have not changed. Keep your credit and income stable between pre-approval and closing to avoid surprises.