Compare the review, not just the name
Conversation or estimate: ask whether the figures rely on information you supplied without verification.
Document and credit review: ask exactly what the lender has checked and what the letter allows you to do.
Still conditional: confirm the remaining property and loan requirements, expiration date and changes that would trigger a new review.
What has the lender actually checked?
Prequalification and preapproval can mean different things at different lenders. A conversation about your finances isn’t the same as a review of supporting documents and credit. Ask what has been checked and what the letter lets you do.
Then look at the payment. You don’t have to spend the full amount a lender may approve. Leave room for savings, maintenance and everyday expenses when deciding on your own budget.
What still needs approval?
A preapproval doesn’t guarantee financing for every home. The property, valuation, title and remaining loan requirements matter. Changes to your job, debts or available funds can affect the review too.
Before making an offer, check the expiration date and the assumptions behind the letter. Ask whether your agent should speak directly with the loan officer. If your plans change, have the letter reviewed again.
How to prepare
Ask for the documents needed for your income and savings. This is especially useful if you’re self-employed or have several income sources. Send financial records through the secure portal, not the general contact form.
You can talk to us before applying. Bring your timeline and an idea of the payment you’re comfortable with. It’s fine if you haven’t found the house yet.
A few useful questions
What have you reviewed? What remains conditional? Does the payment include taxes and insurance? How much cash would I need at closing? Those answers tell you more than the name at the top of the letter.
Educational information, not an offer to lend. Program rules, costs and availability can change. Ask a loan officer about current terms for your situation.
