What You Really Need to Get Pre-Approved for a Mortgage

Thinking about buying a home? Before you start browsing listings or visiting open houses, there’s one important step that can make or break your homebuying journey: getting pre-approved for a mortgage.

A pre-approval doesn’t just tell you how much house you can afford—it shows sellers you’re a serious buyer, gives you a competitive edge, and helps you avoid surprises down the road.

So, what do you actually need to get pre-approved? Let’s break it down.

Proof of Income

Lenders want to know you can afford to repay the loan, so they’ll need documentation of your income. Be prepared to provide:

1. Recent pay stubs (typically last 30 days)
2. W-2s or 1099s from the last 2 years
3. Tax returns (especially if self-employed)
4. Proof of additional income (bonuses, alimony, rental income, etc.)

Proof of Assets

In addition to income, lenders will look at your assets to ensure you have enough money for:

1. 1. The down payment
   2. Closing costs
   3. Reserves (extra funds in the bank, in case of emergency)

You’ll typically need to provide bank statements, retirement or investment account balances, and documentation for any large recent deposits.

Credit Check

Your credit score plays a major role in your loan approval, rate, and terms. During pre-approval, the lender will run a hard credit inquiry to review:

1. Your credit score
2. Debt-to-income ratio (DTI)
3. Existing credit card balances, loans, or collections

Most conventional loans require a minimum credit score of around 620; however, higher scores can unlock better interest rates.

What Type of Loan Are You Looking For?

Employment Verification

Stability is key. Lenders will confirm your current employment and may also:

1. Contact your employer directly
2. Request a written verification of employment
3. Ask for documentation if you’ve recently changed jobs or are self-employed

Personal Identification & Info

It might sound obvious, but don’t forget the basics:

1. A valid government-issued ID (driver’s license or passport)
2. Your Social Security number (for the credit check)
3. Address history (typically past 2 years)

Optional But Helpful

To speed things up and strengthen your file, you might also provide:

1. A list of monthly debts (car payments, student loans, etc.)
2. A signed authorization for your lender to pull financial information
3. A letter of explanation for any red flags (credit hiccups, job gaps, etc.)

Why Pre-Approval Matters More Than Ever

In today’s market, sellers and agents expect buyers to come prepared. A solid pre-approval letter:

1. Helps you shop within your budget
2. Shows sellers you're serious and ready to buy
3. Can give your offer a competitive edge

Plus, you’ll avoid the heartache of falling in love with a home you can’t afford or qualify for.

Final Thoughts

Getting pre-approved for a mortgage might sound overwhelming, but with the right guidance and a little preparation, it’s a smooth and empowering first step toward homeownership.

Schedule a consultation to speak with a loan officer or start the process online today.