What is mortgage pre-approval?

Pre-approval is a formal evaluation by a lender in which a borrower completes a full mortgage application, submits financial documentation, and receives a conditional commitment for a loan up to a specified amount. The lender reviews credit reports, income, debt, assets, and savings before issuing a pre-approval letter. This letter signals to sellers that the buyer is a serious, financially vetted candidate — and it is essentially a prerequisite for competitive offer-making in today's market.

In the Western Catskills, where the real estate market in Delaware, Ulster, Greene, and Otsego counties has seen strong demand and sometimes multiple-offer situations, arriving with a pre-approval letter is critical. Sellers and their agents are unlikely to entertain offers from buyers who cannot demonstrate financing readiness. It's important to note that pre-approval is not the same as a final mortgage commitment — it is still subject to satisfactory appraisal and final underwriting — but it is a meaningful step that gives both parties confidence heading into the contract process. Buyers should obtain pre-approval before beginning their active property search.