How to Get Pre-Approved for a Mortgage

If you’re thinking about buying a home, one of the smartest first steps you can take is getting pre-approved for a mortgage. It’s exciting to start looking at homes, but before you fall in love with that perfect place, you’ll want to know exactly how much you can afford and how lenders view your financial picture.

Getting pre-approved helps you understand your budget, strengthens your offer, and gives you confidence as you move through the homebuying process. Here’s what you need to know about how it works, what to prepare, and how to make the process simple and stress-free:

What Is a Mortgage Pre-Approval?

A pre-approval is a formal review of your financial information by a lender to determine how much you can borrow for a home purchase. The lender looks at your income, credit history, debt, and assets, then issues a letter stating how much they’re willing to lend and under what terms.

Think of it as a financial green light. It doesn’t lock you into a loan, but it shows sellers that you’re a serious, qualified buyer who’s ready to move forward.

Why Pre-Approval Matters

In today’s market, most sellers won’t consider an offer without a pre-approval letter. It shows you’ve done your homework and are ready to buy.

Beyond making your offer stronger, pre-approval also helps you:

• Set a realistic price range

• Understand your purchase power (the maximum price range you qualify for based on your income, credit, and down payment)

• Identify potential credit or debt issues early

• Speed up the closing process once you find a home

• Learn which loan types you qualify for, such as conventional, FHA, VA, or USDA loans

It’s the first step that gives you clarity and direction, helping you shop confidently for homes that fit both your goals and your budget.

Who Do You Contact to Get Pre-Approved?

You can get pre-approved through:

• Banks or credit unions you already work with

• Mortgage lenders or brokers who compare multiple loan programs

• Online lenders offering digital applications and quick responses

The best place to start is often with your current bank or credit union. They already know your financial history and may offer special programs or discounts for existing customers.

I can also refer you to trusted local lenders that I’ve worked with and who consistently provide great service and communication. Local lenders understand our market, appraisals, and timelines better than many large national companies, which often helps keep the process smooth from start to finish.

What You’ll Need for Pre-Approval

Before you apply, gather the following documents so the process goes smoothly:

• Proof of income (W-2s, pay stubs, or tax returns if self-employed)

• Proof of assets (bank statements, investment or retirement accounts)

• Photo ID (driver’s license or passport)

• Employment verification

• Permission for a credit check

Lenders use this information to verify your ability to repay the loan and calculate your debt-to-income ratio (DTI), a key factor in determining eligibility.

The Pre-Approval Process Step-by-Step

1. Choose your lender
   Research or ask for recommendations, then apply with two to three lenders for comparison.

2. Submit your documents
   Provide income, asset, and employment verification so the lender can review your financial picture.

3. Credit check
   The lender pulls your credit report to evaluate your score and payment history.

4. Underwriting review
   The lender reviews your full application and runs it through underwriting software to determine your approval amount and terms.

5. Receive your pre-approval letter
   Once approved, you’ll receive a letter stating your maximum loan amount and loan type. This letter is typically valid for 60 to 90 days. If your home search takes longer, your lender can easily refresh your pre-approval to keep it current. Staying in touch with your lender during your search helps ensure your financing is always ready when you find the right home.

What Does Pre-Approval Do to My Credit Score?

When a lender pulls your credit for pre-approval, it creates a hard inquiry, which may cause a small, temporary dip in your score, usually around five points or less. This is normal and part of the process.

However, multiple inquiries within a short time frame (typically 14 to 45 days, depending on the scoring model) are treated as one single inquiry. That means you can shop around with a few lenders to compare rates and terms without hurting your credit score.

Pre-approval is a smart and necessary step, and the small impact on your score is outweighed by the advantages it brings in confidence, clarity, and negotiation power.

What If My Credit Needs Work?

If your credit isn’t quite where it needs to be, a good lender can help you create a plan to improve it. Many will review your credit report with you, point out areas for quick improvement, and explain how small changes can make a big difference in your approval amount and interest rate.

This could include paying down credit card balances, correcting errors on your report, or waiting until a recent debt drops off your history. Getting pre-approved early gives you time to make these adjustments before you start making offers.

Get Your Pre-Approval Started Today

To save time, you can use this ready-to-send email when reaching out to a lender. Simply copy, paste, and fill in your details before sending. This helps your lender gather what they need right away and speeds up your pre-approval process.

Hello [Lender’s Name],

I’m ready to start the pre-approval process for a home purchase and wanted to send over my details to get things moving. Please let me know if you need any additional information or documents.

Full Name: Your Full Legal Name
Email Address: Your Email
Phone Number: Your Phone Number
Current Address: Your Street, City, State, ZIP
Employment: Your Employer’s Name and Job Title
Annual Income (approximate): Your Gross Annual Income
Co-Borrower (if applicable): Name and Income, if any
Estimated Purchase Price Range (if known): $___ to $
- Down Payment Amount (if known): $ or %
- Monthly Payment Goal (including taxes and insurance): Approximately $ per month
Preferred Loan Type (if known): Conventional, FHA, VA, etc.

I have recent pay stubs, W-2s, and bank statements ready to provide. Please confirm the best way to send them securely.

Thank you for your help. I’m looking forward to getting pre-approved and moving toward finding my new home.

Best regards,
[Your Full Name]

Final Thoughts

Getting pre-approved is the first step toward homeownership. It helps you understand your purchase power, identify the right loan options, and approach your search with confidence. By gathering your documents early, communicating clearly with your lender, and working with a trusted local professional, you’ll be well prepared for a smooth and successful homebuying experience.

This information is based on general lending practices and may vary by lender or loan program. For guidance specific to your situation, consult a licensed mortgage professional.