A mortgage pre-approval is an estimate on how much you can borrow.

You receive a locked-in rate that is only valid for 60 - 130 days.

Pre-approval isn't a guarantee that you will receive the mortgage.After pre-approval, you can still negotiate the interest rate and switch lenders.

To receive pre-approval, you'll have to show bank statements, proof of income, and a credit check.

Although a mortgage pre-approval is optional, it has many benefits for home buyers, including:

Know your mortgage affordability. You will know how much you can spend and reduce the risk of making an offer for a home you cannot afford.

Mortgage financial planning. You can estimate your monthly mortgage payment and plan your finances ahead of time.

Locked-in interest rate. Depending on the lender, you may be able to lock in an interest rate for 60 to 130 days.

Show that you are a serious buyer. You can show sellers and real estate service providers that you are a serious buyer. This can increase your negotiating power and make your offer more attractive than an offer with conditional financing from a buyer who is not sure if they can get the money to buy the property.

Free and there are no obligations. There is usually no cost and it is your choice whether or not to use the mortgage pre-approval.