Pre-Approval

Pre-approval summary:

  • Pre-approval is an indicator that you’re likely to be approved when you formally apply for a loan (such as a mortgage). 

  • Getting pre-approval for a loan sometimes means undergoing a hard credit check, which can lower your credit score by a few points. 

  • To get pre-approved, you need to provide personal and financial information, such as bank statements or pay stubs. 

Pre-approval definition and meaning

To pre-approve you for a loan, a lender will ask you to provide financial information and personal information. For example, where you work, how much you earn, and what your other debt obligations are. Pre-approval is not a firm offer to loan you money but a conditional approval, provided nothing changes before you submit a formal loan application

Some lenders offer pre-approval with a soft credit check, which doesn’t affect your score.

Key concept:

Pre-approval is not the promise of a loan. It's an indication that, at this point, you are likely to be approved for a loan as long as nothing changes in your financial situation.

How pre-approval works

Pre-approval is based on the information you provide the lender and could involve a hard credit check. (Achieve offers loan pre-approval with a soft credit check that won’t affect your credit score.)

If you're pre-approved, you'll receive a pre-approval letter. If you're applying for a mortgage, a pre-approval letter is a good thing to have in hand as it shows home sellers that you're serious about buying.

Pre-approval typically lasts for 30 to 90 days. Once you decide that you want to go forward with the loan, you’ll need to submit a formal application. 

Pre-approval: a comprehensive breakdown 

Pre-approval is like someone tentatively agreeing to date you, provided they don't learn anything bad about you before the first date. You look good, but they're not 100% positive just yet. To get there, you may be asked to provide:

  • Social Security number or individual taxpayer identification number (ITIN)

  • Government-issued photo ID

  • Bank account numbers or two most recent bank statements

  • Desired loan amount

  • How much you plan to put down (if a down payment is necessary)

  • Pay stubs

  • Employment status

  • W-2s or signed, personal and business tax returns for the past two years. 

  • Additional documents, as requested

Your pre-approval may include an estimated interest rate and loan limit. That lets you move forward with the information you need to make a sound financial decision.  

Once you receive pre-approval, don’t quit your job, close any accounts, or make any major purchases before your loan is final. The lender will run another credit check shortly before loan closing to make sure nothing has changed that could affect your application. You don’t want to give them a reason to hesitate. 


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Personal loans are available through our affiliate Achieve Personal Loans (NMLS ID #227977), originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, Equal Housing Lender. Loan applications are subject to credit review, underwriting criteria, and approval. Loans are not available in all states and available loan terms/fees may vary by state. Loan amounts range from $5,000 to $50,000. For loans $35,000+ must have a minimum 660 credit score. APRs range from 8.99% to 29.99% and include applicable origination fees that vary from 1.99% to 8.99%. Repayment periods range from 24 to 60 months. Example loan: four-year $20,000 loan with an origination fee of 8.99%, a rate of 15.49%, and corresponding APR of 20.77%, would have an estimated monthly payment of $561.60 and a total cost of $26,966.26. To qualify for a 8.99% APR loan, a borrower will need excellent credit, a loan amount less than $12,000.00, and a term of 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could help you also qualify for lower rates. Loan Consultants for Achieve Personal Loans are available Monday-Friday 6 AM to 8 PM AZ time, and Saturday-Sunday 7 AM to 5 PM AZ time.

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