A pre-approval letter, AUS findings, and a clear-to-close are three different artifacts. The letter helps you shop. Automated underwriting (often Fannie Mae DU or Freddie Mac LPA) tests a specific program against the credit file. CTC is an underwriter stating that conditions for this property are satisfied as of that date. Mixing them up is how “I was approved” turns into a stalled closing. Snapshot as of 2026-08.
Pre-approval, AUS findings, and CTC are three different documents. Do not treat a letter as findings, or findings as CTC.
| Question | Pre-approval letter | AUS findings | Clear to close |
|---|---|---|---|
| Job | A pre-approval letter is a snapshot after a credit pull and a review of the documents you sent then. It is for shopping and offers. It is not a commitment to lend, not a lock, and not a property approval. | AUS (automated underwriting system) findings — commonly Fannie Mae Desktop Underwriter or Freddie Mac Loan Product Advisor — are an eligibility engine result for a specific program, LTV, and credit file. Approve/Eligible (or the Freddie equivalent) is not CTC. Ineligible findings are not a lifetime ban. | Clear to close means the underwriter has signed off that conditions are satisfied for this property and this file as of that date. Title, insurance binder, and a final CD still have to match. CTC is not a promise that the market or your job cannot change before funding. |
| Does it know the house? | Often not. Many letters are written before an accepted offer. Property type can still be assumed wrong. | Usually run on a specific program, LTV, and often a property type. Condo and manufactured overlays still matter. | Yes. Appraisal, title, insurance, and program rules for this address have been conditioned and cleared as of that date. |
| What it is not | Not a lock, not CTC, not a commitment to lend. | Not CTC. Approve/Eligible can still fail on conditions, appraisal, or a file change. | Not a promise that funding cannot be delayed if the CD, insurance, or your job changes before the wire. |
GUS (USDA) and TOTAL Scorecard (FHA) are different engines with the same idea: an automated result is not a human CTC.
Where files usually break
- New auto loan during underwriting — DTI and the next credit pull.
- Large deposits — assets the letter never saw.
- Job or income change after the letter — how income is verified.
- Property: condo roster, appraisal, occupancy. Typical late fails: declined after pre-approval.
What you will be asked (and not promised)
The first conversation is scoped on the qualify page and the supporting guide what a mortgage conversation asks. A conversation is not any of the three stages above.
What happens next
- Treat the letter as permission to shop, not as a property or rate lock.
- Ask whether AUS has actually been run on this program and this LTV — and what the findings were.
- Do not schedule movers off a letter. CTC plus a CD that matches is closer to a closing date.
Common questions
Keep going
What to do next
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures