Getting a home-loan pre-approval before you shop makes everything easier: it tells you what banks will lend, gives you a realistic budget, and signals to builders or sellers that you’re a serious buyer. Below is a simple, step-by-step guide for Bangalore buyers - what lenders look for, the exact documents to prepare, how long a pre-approval lasts, and a few smart tips to improve your odds.

Pre-approval essentials at a glance

• What it is: A provisional sanction from a lender based on your income, credit and documents - not the final loan. You still need property checks and final underwriting later.

• How long it lasts: Usually 2-6 months (many banks issue 3-4 month pre-approval letters). Confirm validity with the lender.

• Why do it: Clarifies your budget, speeds up booking, and gives bargaining power with builders/sellers. (HDFC Bank)

Step 1 - Quick financial health check

Before you apply, run a fast self-check:

• Credit score: Aim for 750+ for the best rates and quicker approvals. Lower scores can still work but may need a higher down payment or a co-applicant. (ICICI Bank)

• Debt load (FOIR / DTI): Lenders typically like your fixed obligations (EMIs, rent, other loans) to be around 40–50% of your monthly income. If you’re above this, pay down short-term debts first. (idfcfirstbank)

Step 2 - Gather the documents (fastest way to get approved)

Banks ask for similar documents - prepare digital PDFs to speed things up. Typical lists from major lenders include:

For salaried applicants

• PAN, Aadhaar (ID), and address proof.

• Last 3 months’ salary slips (sometimes 6 months).

• 6 months' bank statements showing salary credits.

• Form-16 / latest ITR (1–2 years) and employer details.

• Recent photographs and a signed application. (HDFC Bank)

For self-employed applicants

• PAN, Aadhaar, and address proof.

• Last 2-3 years ITR with tax computation.

• Business bank statements (6-12 months).

• Profit & Loss / Balance Sheet (if requested).

• GST / business registration documents (where applicable). (Axis Bank)

Property (later stage) - note: pre-approval usually ignores final property checks, but lenders will eventually ask for RERA / builder / title documents when you move to final sanction.

Step 3 - Apply (two practical options)

• Direct to a bank: If you have a preferred bank (SBI, HDFC, Axis, ICICI, etc.), use their pre-approval form online or visit a branch - good if you already have a relationship. Many banks show fast turnaround for salaried professionals. (HDFC Bank)

• Through an aggregator or broker: Gives a quick side-by-side view of multiple lenders and often speeds up documentation. (Just choose a reputable one.)

Processing time varies - salaried applicants often see pre-approval in a few days; self-employed applicants may take a week or slightly longer. Plan accordingly.

Step 4 - Read the pre-approval letter carefully

A typical pre-approval (or sanction) letter will state:

• Maximum eligible loan amount.

• Tentative interest rate (or rate band) and tenor.

• Validity period (days).

• Any pre-conditions (e.g., maintain salary credit pattern, updated ITRs, no new loans).

Remember: pre-approval is provisional - final loan depends on property valuation, title checks and updated financials at the time of final sanction. (HDFC Bank)

How lenders actually assess you (what they check)

1. Credit history & CIBIL - repayment track record matters. (ICICI Bank)

2. Income & stability - salaried job history; for self-employed, declared profits and bank flows. (Axis Bank)

3. FOIR / DTI - ability to carry another EMI. (idfcfirstbank)

4. Age & tenor fit - younger borrowers can take longer tenors.

5. Existing EMIs / liabilities - reduce your borrowing capacity.

Quick tips to improve approval odds (fast, actionable)

• Raise your credit score: pay down credit-card balances and avoid new credit in the 3-6 months before applying.

• Lower FOIR: close small loans or shift EMI dates to show steadier cash flow.

• Add a co-applicant: spouse or parent with a steady income helps eligibility.

• Prepare clean bank statements: avoid unexplained large deposits - lenders ask for sources.

• Pre-apply to 2-3 banks: compare pre-approval amounts and terms (pre-approval softens your negotiations). (HDFC Bank)

Common questions buyers ask

Will pre-approval hurt my credit score?
A full pre-approval may include a hard credit inquiry - a small, temporary dip can happen. If you shop with multiple lenders, cluster applications in a short time to reduce the impact.

Does pre-approval guarantee the loan?
No. Final approval requires property valuation, a clear title, and stable financials at sanction time. Think of pre-approval as a powerful, conditional “yes.” (HDFC Bank)

How long should I keep a pre-approval valid?
Get pre-approved when you’re ready to shortlist - if your pre-approval expires (30–180 days depending on lender), you can renew with updated documents.

How to use pre-approval during negotiations

• Share the pre-approval letter (hide sensitive numbers) to show you’re bank-ready - builders and sellers treat approved buyers more seriously. (SOBHA Limited)

• Use the pre-approval amount to shortlist homes that fit your budget - it saves time and avoids emotional overspend.