Preapproval vs prequalification
Both letters estimate how much a lender may lend you, but the names are used loosely. What matters is whether the lender checked your credit and documents. A letter based on verified information carries more weight with sellers.
What to gather
- Recent pay stubs and W-2s, or two years of tax returns if you are self employed.
- Bank and investment statements that show your down payment and reserves.
- Photo ID and a list of your monthly debts.
How to use the letter
- Get it before you tour seriously. Many sellers ask for it with the offer.
- A letter is not a final approval. The lender still reviews the home, the appraisal and any changes in your finances.
- Avoid new debt or job changes until closing.
Questions people ask
- Does preapproval hurt my credit?
- Many preapprovals include a credit check. Shopping several lenders within a short window is usually treated as one search.
- How long does a preapproval last?
- Each lender sets its own time limit, often a few months. Ask the lender and update it if your search runs longer.
- Can I get preapproved with more than one lender?
- Yes. Comparing lenders is a good idea. Ask each one for a Loan Estimate once you have a property.
Official sources
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.