A mortgage preapproval is an initial review of your finances to determine what you may qualify for when buying a home. It's an important step in the homebuying process as it helps you understand your potential loan size and monthly payments, and shows sellers that you're a serious buyer. Preapprovals are usually valid for 60 to 90 days. The process involves a lender reviewing your income, assets, and credit history. Minimum credit score requirements vary depending on the type of mortgage. The lender will also calculate your debt-to-income ratio and consider your down payment.
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