How to get pre-approval for a mortgage loan

Introduction

Getting pre-approved for a mortgage loan is a critical step for anyone planning to buy property in India. It shows sellers that you’re a committed buyer and gives you a clear idea of how much you can borrow. However, many Indians struggle with the process due to unclear documentation, eligibility criteria, or processing timelines.

Table of Contents

In this guide, we’ll walk you through:

What mortgage loan pre-approval means.
Step-by-step process to secure approval.
Required documents and eligibility criteria.
Common pitfalls to avoid.

What Is Mortgage Loan Pre-Approval?

A mortgage pre-approval is a lender’s initial promise to finance your home based on your financial background. Unlike a pre-qualification (a basic estimate), pre-approval involves a thorough credit and income check.

For example, if HDFC Bank approves you for ₹50 lakh, you can confidently bid on properties within that budget, knowing your financing is secure.

Why Pre-Approval Matters

Helps Fast-Track the Purchase: Sellers often give preference to buyers who are already pre-approved..
Clarifies Your Budget: Avoid overstretching by knowing your loan limit.
Strengthens Negotiation Power: You can negotiate better terms with sellers.
Avoids Last-Minute Rejections: Identify and fix issues (e.g., credit score gaps) early.

Step-by-Step Guide to Get Pre-Approved Mortgage Loan

1. Check Eligibility Criteria

Lenders evaluate:

Income Stability: Salaried or self-employed? Consistent income is key.
Credit Score: Aim for 750+ for favorable terms.
Debt-to-Income Ratio: Total EMIs should not exceed 40–50% of your income.
Employment History: At least 2–3 years of stable work experience.

Example: HDFC Bank requires a minimum net monthly income of ₹25,000 for pre-approval.

2. Gather Required Documents

Prepare these to avoid delays:

Identity Proof: Aadhaar, PAN, passport.
Income Proof:
Salaried: Salary slips, Form 16.
Self-employed: ITR, audited financial statements.
Bank Statements: 6 months of transaction history.
Credit Report: Free copy from CIBIL or Experian.
Property Details: Preliminary agreement or land records (if applicable).

3. Apply Online or Visit a Branch

Most banks, including HDFC, offer online pre-approval forms. Fill in personal, income, and property details. Alternatively, visit a branch for faster assistance.

4. Undergo Credit Assessment

Lenders check your creditworthiness:

CIBIL Score: If your score is under 700, your application might get declined.
Loan History: Defaults on past loans hurt your chances.
Current Debts: High credit card balances reduce eligibility.

5. Wait for Approval

Processing takes 3–7 business days for most banks. HDFC and ICICI often expedite approvals for salaried applicants with complete documents.

How Long Does Pre-Approval Take?

The timeline varies:

Salaried Individuals: 3–5 days (quick verification).
Self-Employed: 7–10 days (complex income checks).
Incomplete Documents: Delays up to 15 days.

Tip: Use HDFC’s “Loan in 10 Minutes” app for instant pre-approvals on small-ticket loans.

How Far in Advance Should You Apply?

Apply 3–6 months before house hunting. Pre-approvals typically expire in 6 months, so timing matters if you’re planning a long property search.

Is It Hard to Get Pre-Approved?

It depends on your financial health:

Easy for: High CIBIL scores, stable jobs, low debt.
Can be tough for individuals with unstable jobs, freelance income, or a patchy credit history.

Solution: Boost your credit score by making timely payments and keeping credit card spending low.

Documents Required for Mortgage Loan Pre-Approval

Essential paperwork includes:

Proof of Identity: Aadhaar, PAN.
Income Verification:
Salaried: Latest salary slips and Form 16.
Self-employed: ITR for 2–3 years.
Bank Statements: 6 months of savings/current account activity.
Property Documents: Sale deed, land records, or builder agreement (if shortlisted).

Eligibility Criteria for Mortgage Loans in India

Key factors lenders consider:

Age: 21–65 years (retirement age cap).
Loan Tenure: Max 30 years (or until retirement age).
Loan Amount: Typically 80–90% of property value.
Co-Applicants: Including a spouse boosts eligibility.

Example: SBI offers up to ₹10 crore for premium properties, subject to income verification.

How to Get Pre-Approved from HDFC Bank

Steps for HDFC:

Online Application: Visit hdfcbank.com/loan/pre-approval.
Submit Documents: Upload income proof and ID.
Tele-Verification: HDFC calls to confirm details.
Approval Letter: Received via email within 3 days.

Tip: Use HDFC’s “Quick Loan” feature for instant pre-approvals up to ₹50 lakh.

Mortgage Loan Processing Time: What to Expect

After pre-approval, formal loan processing takes 15–30 days. Delays occur due to:

Property Verification: Banks check legal clearances.
Valuation Reports: Third-party assessors evaluate property worth.
Incomplete Paperwork: Missing documents stall approvals.

Pre-Approved vs. Pre-Qualified: What’s the Difference?

Factor	Pre-Qualified	Pre-Approved
Credit Check	No	Yes
Document Review	Basic	Thorough
Seller Perception	Weak	Strong
Time Taken	1–2 days	3–7 days

Common Mistakes to Avoid

Not Checking Credit Score: A low score leads to rejection.
Overlooking Debt Ratios: High EMIs reduce eligibility.
Not Including a Co-Applicant: Having one can raise your eligible loan amount.
Ignoring Interest Rates: Compare offers from SBI, HDFC, and Axis Bank.

Final Thoughts

Getting pre-approved for a mortgage loan is straightforward if you meet eligibility criteria and submit complete documents. Start early, improve your credit profile, and leverage digital tools like HDFC’s instant approval apps. Remember, pre-approval isn’t a guarantee but a roadmap to homeownership.

FAQs

Q: How long does it take to get pre-approved for a mortgage loan?
A: 3–7 business days, depending on the lender and document completeness.

Q: What documents are required for pre-approval?
A: Income proof, bank statements, identity proof, and credit reports.

Q: Can self-employed individuals get pre-approved?
A: Yes, but they need ITR and audited financial statements.

Q: Is a pre-approval letter binding?
A: No, it’s a conditional offer subject to final verification.

Q: How does HDFC verify income for pre-approval?
A: Through salary slips, Form 16, or ITR for self-employed applicants.

Q: Can I get pre-approved without a property selected?
A: Yes, but final approval requires property verification.

Q: What’s the minimum CIBIL score for pre-approval?
A: Aim for 750+; scores below 700 may face rejections.

Q: Do I need a co-applicant for a mortgage loan?
A: Not mandatory, but adding one can boost eligibility.

About the Author

I’m Om Prakash — founder of Paisagyaan.com, a blog focused on making financial knowledge simple, relatable, and useful for everyday Indians. My journey includes over 10 years of navigating the Indian stock market, learning the hard way about investments, debts and real estate.
Read About the Author in detail, who lost 75 lakh rupees during 2009 to 2019 which would be 4.5 crore now in 2025.
But here’s what those losses taught me: Financial knowledge matters — deeply, so you don’t repeat my mistakes. If you’re just starting out or have already faced setbacks, this blog is for you for educational purpose and not advice.