Mortgage Pre-Approval Explained — What It Is, How to Get One, and Why It Matters in 2026
Before you start attending open houses or making offers on homes, you need a mortgage pre-approval letter — and in 2026's competitive housing market, it is essentially a requirement rather than an option. Pre-approval tells sellers you are a qualified, serious buyer, and it tells you exactly how much you can borrow at today's rates, which currently sit at 5.98% for a 30-year fixed mortgage. Many first-time buyers confuse pre-qualification with pre-approval, but they are very different things. A pre-qualification is a quick estimate based on self-reported financial information, while a pre-approval involves a full credit check, income verification, and underwriter review. Understanding this distinction — and knowing how to prepare for the pre-approval process — can give you a significant edge when it is time to make an offer.