Getting pre-approved is a big milestone, but it’s just the beginning. Once you have that pre-approval letter, the next steps are about finding a home, finalizing your loan, and keeping your finances on track until closing day.

Step 1: Know what your pre-approval means

Your pre-approval isn’t a guaranteed mortgage offer, but it’s the strongest sign that a lender is ready to finance your purchase within specific limits. It includes:

  • The maximum loan amount you qualify for
  • The estimated rate and term (fixed or variable)
  • The expiry date, usually 90 to 120 days

Read More: Step-by-Step: How to Get Preapproved for a Mortgage Online and Save Time

Step 2: Start house hunting

Now that you know your budget, you can focus your home search. Share your pre-approval with your realtor so they can help filter listings in your price range.

Sellers often take pre-approved buyers more seriously, especially in competitive markets like Toronto, Vancouver, or Ottawa.

Step 3: Maintain your financial stability

Your lender may recheck your financial situation before issuing final approval, so avoid:

  • Opening new credit lines
  • Financing a vehicle
  • Changing jobs without notice
  • Missing payments

These changes could affect your debt ratio and cause your pre-approval to expire or be reduced.

Step 4: Final mortgage approval

Once you find a property and your offer is accepted, your mortgage advisor submits the full application with property details. The lender will then:

  • Order an appraisal to confirm value
  • Review income, credit, and debt again
  • Verify down payment and closing funds

When everything checks out, you’ll receive final approval and a commitment letter.

Step 5: Close the deal

Your lawyer handles signing, title searches, and fund transfers. Once that’s done, you officially become a homeowner.

Pre-approval gives you a head start

Key takeaway

Pre-approval gives you a head start but staying consistent with your finances and working closely with your mortgage advisor ensures everything goes smoothly from offer to closing.

FAQs

1. How long does pre-approval last?

Usually 90 to 120 days, depending on the lender.

2. Do I need to reapply if I don’t buy within that time?

Yes. You’ll need to refresh your documents and credit check.

3. Can I make changes to my loan after pre-approval?

Yes, but let your advisor know right away so your file stays accurate.

4. What if home prices change before I buy?

Your maximum approval stays the same unless you reapply or rates shift significantly.