A Mortgage Pre-Approval! What does it really mean?

If you're in the market for a new home, you've probably heard that getting a mortgage pre-approval is a must. And it is! But what does a pre-approval actually mean? And more importantly—what doesn’t it mean?

Let’s break it down so you can go out house hunting with confidence.

What Does a Mortgage Pre-Approval Include?

A pre-approval is a preliminary snapshot that tells you how much a lender might be willing to lend you and at what interest rate. Your pre-approval is based on key factors that are outlined in your pre-approval application:

✔️ Your stated income and employment status
✔️ Your credit score and current debt load
✔️ The type and location of the property you’re considering

Your pre-approval typically outlines:

✔️ The maximum mortgage amount you qualify for
✔️ An estimated monthly payment
✔️ A locked-in interest rate (usually for 90-120 days)

Sounds pretty solid, right? Well, here’s the catch…

Pre-Approval ≠ Final Approval

Many homebuyers assume that once they’re pre-approved, they’re good to go—but that’s not quite how it works. A lender only gives final approval once they:

✅ Verify your income and employment with full documentation
✅ Approve the specific property you’re buying
✅ Confirm that your financial situation hasn’t changed at the time of purchase

If anything shifts between pre-approval and final approval, it can affect your mortgage eligibility.

How Changes Can Affect Your Pre-Approval

Your pre-approval is based on the financial details you provided at the time of your application. If any of those details change, your final approval could be at risk.

For example, let’s say you’re pre-approved for a $500,000 mortgage under these conditions:

🔹 You’re a full-time salaried employee with a strong credit score and minimal debt.
🔹 You’re buying a home in an urban center.

Now, imagine you fall in love with a rural property instead—one with a well and septic system, 50 km from the nearest city. While that might be your dream home, it’s a very different scenario for a lender. Some banks don’t finance rural properties, while others may require a larger down payment or different loan terms.

The result? Your original pre-approval may no longer be valid. The same thing could happen if you:

🔹 Switch jobs or go from salaried to self-employed
🔹 Take on new debt (like financing a car or maxing out a credit card)
🔹 Change the type of home you’re buying (e.g., a rental property instead of a primary residence)

Avoid Surprises—Check with Your Mortgage Broker

A mortgage pre-approval gives you a great starting point, but it’s not a guarantee. The key to a smooth home-buying process is keeping your financial picture stable and checking in with your mortgage broker before making any major changes. T

Thinking about buying a home and need expert guidance? Let’s chat—I’d love to help you navigate the process with confidence.