 TITLE: Will a Mortgage Preapproval Hurt My Credit Scores? CONTENT: What Is Mortgage Preapproval?\n-----------------------------\nMortgage preapproval—not to be confused with mortgage prequalification—entails a detailed review of your finances by a loan officer at a bank or other lending institution. Based on information you supply about your income, outstanding debt, credit history and ability to make a down payment, preapproval determines how large a loan the lender expects to offer you and the interest rate and fees you can expect to pay on that loan.\nPreapproval doesn't guarantee you'll get a loan, but it means you've been subjected to most of the financial scrutiny required for approval, and it's as close as you can get to full approval without designating a specific property you want to buy.\nWhen you're preapproved for a mortgage, the lender gives you a letter detailing its willingness to issue you a loan, and the terms of that loan. A potential buyer with a preapproval letter may have a leg up over others who lack preapproval and therefore aren't as equipped to prove they can finance the purchase. END