A pre approval is a bank saying, in writing, that it is willing to lend you up to a certain amount once it has checked the property. It is not a loan yet, but it changes how sellers treat you.
What the bank looks at
- Income proof and the stability of your job
- Your credit score and existing loans
- Your age and the loan tenure you ask for
Why it helps
Sellers prefer buyers who can close. Walking in with a pre approval letter lets you negotiate on price instead of on trust. It also stops you from falling in love with a flat you cannot fund.
Pre approvals usually last a few months. Apply when you are ready to look seriously, not a year before.
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