Posted On: September 17, 2025 by Prevail Bank in: Home Loans
The truth: Is a mortgage pre-approval practical?
What is a Mortgage Pre-Approval?
A mortgage pre-approval is a conditional agreement from a lender to lend you a specific amount of money to purchase a home. This is all under the assumption that your financial documentation supports what was entered on your application when verified, your financial situation remains stable until closing, and the property you choose meets specific requirements (IE: Property appraisal).
Mortgage pre-approvals are determined by the staff at the lending institution; they review your finances. This includes your debt, income amount, assets and credit history. If you are pre-approved, you’ll receive a pre-approval letter that includes the maximum amount the lender is willing to lend, along with an estimated interest rate and loan term.
Is a Mortgage Pre-Approval necessary?
Though mortgage pre-approvals are not necessary, they are popular because it is an indicator of how serious (and capable) you are as a buyer.
A pre-approval is not a guarantee of a loan; final approval depends on the property appraisal and a complete underwriting process. But don’t let that stop you. The main benefits of being pre-approved are the convenience, time-savings, and the fact that it makes your offer more attractive. Once your home offer is accepted, your pre-approval speeds up and streamlines the loan process.
Mortgage Tip from Lana Peterson (NMLS# 1236394):
“Contact your lending institution (preferably Prevail Bank) when you are ready to start looking at homes. Being prepared and gathering all the necessary documentation ahead of time helps ensure a smooth process. Prevail Bank’s pre-qualifications are valid for 3-4 months, depending on the program you choose.”
Lana has been part of the Prevail Bank team since 2001. “I found the lending department was my happy place when I accepted a position as a loan processor in 2009,” says Lana. “I learned a lot in that role, but wanted more customer interaction.” In 2014, she took on the responsibilities of a Mortgage Loan Originator and hasn’t looked back since! “I love my job! I am grateful for the friendships formed and the community awareness my role has given me. Marshfield has a great support network and being part of that has been a joy. Whether it’s supporting a fundraiser or volunteering time, it’s great to see all of us working together!”
