Mortgage pre-approval (předschválení hypotéky)
A preliminary check of the applicant's creditworthiness before a specific property has been chosen. The bank looks at income, liabilities and credit register records and says how much it is willing to lend and on what terms, usually within a few days. It is not a binding approval: that comes only after the valuation and once the purchase documents are in.
Example
A couple with a joint net income of CZK 100,000 a month is pre-approved for roughly CZK 8.4 m (at 5.00 % over 30 years, with the bank's internal ceiling of 45 % of income for repayments). A single person on CZK 60,000 net would reach about CZK 5.0 m. Knowing the figure, they can search with a clear budget and sign a reservation quickly.
In practice
Get pre-approval before you sign a reservation agreement (rezervační smlouva). Reservation periods tend to be short, while full approval takes 2–4 weeks from complete documents. Pre-approval is valid for a limited time, and the rate in it is usually not guaranteed. Between pre-approval and signing, take on no new lease or credit card and stay in your job: a fresh probation period can stop the mortgage.
How it differs
Pre-approval rests on scoring, the bank's internal assessment. A loan commitment (úvěrový příslib) or full approval is tied to a specific property and valuation, and only then does the bank draw up the loan agreement. Pre-approval on its own binds the bank to nothing.
Frequently asked questions
How does mortgage pre-approval work?
You give the bank your income and debts before choosing a property, and within days it tells you how much it would lend and roughly on what terms. Full approval follows once the property, the valuation and the purchase documents are in, usually within 2–4 weeks.
What does a pre-approved mortgage mean?
That the bank has checked your creditworthiness, not that it has promised the loan. A pre-approval is valid for a limited time, its rate is usually not guaranteed, and a new loan or a change of job in the meantime can still sink the application.
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