Pre-Qualification and Pre-Approval

Pre-Qualification

Pre-qualification is an informal review of your income and expenses to determine your debt-to-income ratio. It'll give you an idea of what you may be able to borrow before the formal mortgage application process begins.

Pre-Approval

Pre-approval is a formal financial evaluation that involves applying for a mortgage, underwriting and a commitment by the lender to a specific loan amount. While not mandatory, pre-approval can be advantageous if you’re thinking about purchasing or refinancing because you’ll learn what you qualify for, before incurring the cost of a property appraisal.

Also, because pre-approval involves a thorough evaluation of your credit, it’s more powerful than being pre-qualified. It tells real estate agents and home sellers that you’re serious about buying. Additional advantages include:

• You’ll save time by targeting homes in your price range.
• It makes the entire loan approval process more efficient.

If you're pre-approved for a mortgage by U.S. Bank, we’ll provide you a letter stating that you have conditional approval for a specified loan amount.

Please note that pre-approval is not a commitment to lend. An actual loan is contingent upon verification of the application information, meeting all underwriting requirements and conditions and providing an acceptable property, appraisal and title report.