Four questions before you start house hunting
Ask your loan officer these questions before relying on a preapproval letter.
- Which income, assets, debts, and credit details did you review?
- Which documents do you still need?
- When does my preapproval letter expire?
- What changes could affect my approval?
Understand what preapproval means
A preapproval gives you a lender’s preliminary borrowing amount. Final approval still depends on lender review. Lenders use prequalification and preapproval differently, so ask which documents they reviewed and which assumptions support the letter.
Choose a payment within your budget
Your budget matters too. Include property taxes, home insurance, maintenance, and other expenses when deciding what monthly payment feels comfortable. A higher preapproval amount does not require you to spend more.
Keep your plans realistic
Use your own spending budget when choosing homes. Before taking on new debt or changing jobs during the process, discuss the effect with your loan officer. Compare official Loan Estimates when choosing a loan.
- Use our preapproval checklist to prepare for your conversation.
General education only. This article does not offer a rate or guarantee loan approval. Loan options depend on your circumstances and lender review.