Mortgage Pre-Approval: Your Complete Guide

Pre-approval is your first major step in the home buying process. Here's everything you need to know.

Pre-Qualification vs. Pre-Approval

Pre-Qualification

• Quick estimate based on self-reported info
• No document verification
• Not a commitment from lender
• Good for initial planning

Pre-Approval

• Thorough review of finances
• Documents verified
• Conditional commitment
• Required to make serious offers

Why Pre-Approval Matters

1. Know your budget: Real number, not a guess

2. Stronger offers: Sellers take you seriously

3. Faster closing: Much work already done

4. Identify issues early: Time to fix problems

5. Lock in rates: Some lenders offer rate locks

What Lenders Look At

Income

• W-2s (2 years)
• Pay stubs (30 days)
• Tax returns (2 years)
• Self-employment: Additional documentation

Assets

• Bank statements
• Investment accounts
• Gift letters (if applicable)

Credit

• Credit score from all three bureaus
• Credit history
• Existing debts

Employment

• Employment verification
• Job stability
• Future income changes

Required Documents

Gather these before applying:

Income:

• Recent pay stubs
• W-2s or 1099s (2 years)
• Tax returns (2 years)
• Employer contact info

Assets:

• Bank statements (2-3 months)
• Investment statements
• Down payment source documentation

Identity:

• Government ID
• Social Security card
• Proof of residence

The Pre-Approval Process

1. Choose lenders: Shop 3-5 lenders

2. Submit applications: Complete within 14 days (counts as single inquiry)

3. Provide documents: Respond quickly to requests

4. Receive letter: Usually within 3-10 days

5. Start shopping: Armed with your pre-approval

How Long Does Pre-Approval Last?

Typically 60-90 days. Things that can void it:

• Job change
• Large purchases
• New credit accounts
• Credit score changes

Tips for Success

• Don't change jobs during the process
• Avoid large purchases or deposits
• Keep documents organized
• Respond to lender requests quickly
• Don't open new credit accounts

Ready to see what you qualify for? Start with our Affordability Calculator.