Introduction
Buying a house is a major milestone, but before you fall in love with a property, you need to know what you can afford. A mortgage pre-approval helps you do just that. It’s an early commitment from a lender confirming your borrowing limit based on income, assets, and credit history. In competitive real estate markets, pre-approved buyers often get priority from sellers and brokers.
What Is Mortgage Pre-Approval?
It’s a lender’s conditional promise to grant you a home loan of a specified amount after verifying your credit and income. It’s not a guarantee but a strong indication of your purchasing power.
Why It Matters
- Shows sellers that you’re financially qualified.
- Speeds up final loan disbursal.
- Helps lock in favorable interest rates.
- Sets realistic property expectations.
Documents Needed
- Identity proof (PAN, Aadhaar)
- Income documents (salary slips, ITRs)
- Bank statements (6–12 months)
- Employment verification
How to Apply
- Choose a lender and submit your documents.
- Provide consent for credit score check.
- Get pre-approval letter (valid 60–90 days).
Tips to Improve Your Mortgage Pre-Approval Odds
- Maintain a credit score above 750.
- Lower your existing debts.
- Avoid major purchases before applying.
- Keep stable employment for at least 6 months.
Conclusion
Mortgage pre-approval gives you financial clarity and negotiation power when buying a home. It saves time, prevents disappointment, and ensures a smoother loan process. If homeownership is your next big goal, start by getting pre-approved—you’ll thank yourself later.