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.
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.
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.
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.