Mortgage approval is the process by which a lender evaluates a borrower's financial situation to determine if they qualify for a loan to purchase a home. This involves reviewing the borrower's credit score, income, debt-to-income ratio, and employment history. The lender assesses these factors to ensure the borrower can repay the loan. Once the evaluation is complete, the lender will either approve or deny the mortgage application. If approved, the borrower receives a loan offer detailing the amount, interest rate, and terms. This approval is a crucial step in buying a home, as it indicates how much the borrower can afford.