Qualifying
Pre-approval
A lender's conditional commitment to lend up to a stated amount after reviewing your credit, income, and assets — stronger than a pre-qualification and expected with a Michigan offer.
What does pre-approval mean?
A pre-approval is a lender's underwritten judgment that you qualify for a specific loan amount, based on verified credit, income, and assets. It's far stronger than a pre-qualification, which is a rough estimate from unverified figures.
In competitive Michigan markets like Grand Rapids and metro Detroit, a fully-underwritten pre-approval is often what wins a house over higher offers, because it tells the seller your financing won't fall through.
Get pre-approved before you shop, and ask whether it's a true underwritten approval or just a prequalification letter.
A Michigan example
Two buyers bid on the same Grand Rapids home. One attaches a same-day prequalification; the other a fully-underwritten pre-approval. Even at a slightly lower price, the underwritten offer can win because the seller sees far less risk the deal collapses in financing.
Common questions
How is pre-approval different from pre-qualification?
Pre-approval is underwritten from verified credit, income, and assets; pre-qualification is a rough estimate from unverified numbers. Sellers trust the former far more because the lender has already done the vetting work.
How long is a pre-approval good for?
Typically 60–90 days, since credit and rates change. If your search runs long, your lender refreshes it with updated documents, so keep recent pay stubs and statements handy to renew it quickly.
Do I need pre-approval to make an offer in Michigan?
Practically yes — in competitive markets like Grand Rapids and metro Detroit, a fully-underwritten pre-approval often wins over higher offers with weaker financing, because it signals your loan won't fall through.