Key takeaways
- A mortgage pre-approval is an official letter from a lender stating how much you can borrow, possible loan options, and interest rates.
- Lenders evaluate factors like credit score, bank statements, W-2s, and debt-to-income ratio (DTI) to determine loan eligibility.
- A pre-approval letter strengthens your offer and shows sellers you’re a serious buyer.
When you’re planning to buy a home, getting pre-approved for a mortgage is a crucial step. A mortgage pre-approval is the process by which a mortgage lender evaluates your financial information and determines the amount of money they’re willing to lend you to purchase a home. This helps set your budget and strengthens your position as a buyer.
In this Redfin article, we’ll outline the steps to get pre-approved for a mortgage. Whether you’re looking to buy a home in Las Vegas, NV, or a condo in Cincinnati, OH, read on to learn how a pre-approval speeds up the homebuying process.
What is mortgage pre-approval?
Mortgage pre-approval is an evaluation conducted by a lender to determine how much money they are willing to lend you. During this process, you provide the lender with your financial information, including income, assets, debts, and credit history.
The lender reviews these details and assesses your creditworthiness and ability to repay the home loan. Based on their evaluation, they provide you with a pre-approval letter, stating the loan amount you are eligible for.
How to get pre-approved for a mortgage in 5 steps
1. Research and choose a lender
Start by researching different mortgage lenders to find one that fits your needs. Look for lenders that offer a wide range of loan options, financing terms (15 vs 30 years), and compare interest rates, fees, and customer reviews. Some lenders specialize in first-time homebuyers or offer special programs that might benefit you.
You don’t have to get your final mortgage from the lender that pre-approves you. If you find a better offer later, you can switch lenders before finalizing your loan. It’s also a good idea to apply for pre-approval with at least two to three lenders to compare loan terms and ensure you’re getting the best deal.
2. Gather important documents
When getting a mortgage pre-approval, it’s essential to provide the lender with a comprehensive view of your financial situation. Here are some key documents you should gather.
- Proof of income (pay stubs, W-2s, and tax returns)
- Employment verification
- Proof of assets (bank statements and investment account statements)
- Identification (driver’s license or other government-issued ID)
- Social Security number
When you buy a home, lenders will need to view bank statements to ensure you have enough money to cover your down payment and other costs. It’s important that you deposit all earnings into a bank account so your lender can see you have the funds. You’ll also likely need to submit your tax returns. Lenders usually need to review the past two years of income and tax liabilities as part of the evaluation.
3. Check your credit score and debt-to-income ratio
A good credit score is crucial for mortgage approval. Start by obtaining a copy of your credit report from one or more of the major credit bureaus (Equifax, Experian, and TransUnion). If your score is lower than expected or you notice any issues on your report, take steps to improve your credit score before applying for pre-approval.
Debt-to-income ratio (DTI) is your total monthly debts divided by your gross monthly income. This ratio shows how much money you spend each month on payments compared to your income. Most lenders like to see a DTI below 36%, indicating that you’re managing your payments well and have enough income left over for additional expenses.
Lenders use credit scores and DTI to assess your creditworthiness and determine the terms of your mortgage, including interest rates and loan options. A higher credit score and lower DTI generally indicate that you have a history of responsibly managing your debts, making you a more attractive borrower. As a result, you may receive more favorable loan options and better interest rates.
3. Apply for pre-approval
After gathering all the necessary documentation, you’ll be ready to begin the application process. You’ll want to apply for a pre-approval when you’re beginning to look for homes and hope to make an offer soon.
Applying for a pre-approval typically involves filling out a detailed form provided by the lender. You’ll supply information about your income, employment, assets, debts, and credit history. Be sure you complete the form accurately, as any errors or omissions could potentially delay the pre-approval process or lead to a denial of your application.
In addition to providing the required documents, you’ll need to authorize a credit check. This allows a lender to assess your creditworthiness based on factors like your credit score, payment history, and existing debts. The credit check is usually a hard inquiry that may result in your credit score dropping a few points.
Once your application is submitted, the lender will carefully review and evaluate the details provided to determine your eligibility for mortgage pre-approval.
5. Receive your pre-approval letter
If you meet the lender’s criteria, you’ll receive a pre-approval letter. This letter outlines the loan amount you’re approved for. It includes additional details such as the loan term, interest rate, and any conditions or contingencies that you need to meet. The pre-approval letter serves as proof to sellers and real estate agents that you have undergone a preliminary evaluation by a lender and are a serious buyer.
It’s important to note that a pre-approval letter doesn’t guarantee a mortgage loan. The final approval depends on additional factors, including a fair home appraisal of the property. Be sure to maintain open communication with your lender throughout the process and provide any requested updates or additional documentation as needed.
What to do after you receive your pre-approval letter
Once you’ve received your pre-approval letter, there are a few things you’ll want to do to ensure the rest of the homebuying process goes smoothly.
Know how long your pre-approval lasts
Pre-approval letters come with an expiration date, so it’s important to know how long your pre-approval lasts. The expiration period can vary, but it’s commonly between 60 and 90 days. Your financial circumstances can change over time, which is why pre-approvals expire.
Lenders want to ensure that the information they used to determine your pre-approval still accurately reflects your current financial situation. Therefore, they set an expiration date to encourage borrowers to complete their home search and proceed with a mortgage application in a timely manner.
If your letter expires before you find a home, you may need to reapply with updated financial documentation. Some lenders may extend your pre-approval, so make sure to ask your lender before submitting a new pre-approval application.
Don’t make any big financial changes
When you have a pre-approval, avoid making any big financial decisions. Examples include leaving your job to start a business, buying a new car, opening a new credit card, or co-signing a loan with a family member. This could change your financial stability once it comes time to apply for a mortgage and affect your chances of successfully buying a home.
If you’re considering a substantial decision that could change your income or credit status, first consult with your lender to make sure you’re not sabotaging your mortgage pre-approval. If something unexpected happens with your finances, speak with your lender to understand your options.
What’s the difference between pre-approval vs. pre-qualification?
Pre-approval and pre-qualification are often used interchangeably, but have different meanings.
- Pre-approval letter: A pre-approval is a comprehensive evaluation where the lender verifies your information, such as W-2s and bank statements, and assesses your creditworthiness in detail. Pre-approval holds more weight and is a stronger indication of your eligibility for a mortgage.
- Pre-qualification letter: A pre-qualification is an initial assessment of your financial situation based on self-reported information you provide. It gives you a rough estimate of how much you might be able to borrow, but doesn’t outline possible loan terms.
What’s the difference between pre-approval vs. approval?
A mortgage pre-approval is an important step in the home-buying process, but it shouldn’t be confused with final approval. Pre-approval is a preliminary assessment that helps you understand your budget and strengthens your position as a buyer.
You will still need to officially apply for a mortgage loan after your offer is accepted. However, it’s not guaranteed that the lender will approve your mortgage application. Final approval is granted after a thorough evaluation of the property you intend to purchase, an appraisal, and other necessary checks.
Why should I get pre-approved for a mortgage?
Getting pre-approved for a mortgage is important for several reasons. These are just some of the benefits:
- Accurate budgeting: Pre-approval helps you understand how much you can afford to borrow, helping you set a realistic budget for your home search.
- Competitive advantage: Sellers and real estate agents view pre-approved buyers as more serious and reliable, giving you an edge in a competitive housing market.
- Faster closing process: Pre-approval expedites the mortgage application process since you’ve already submitted most of the necessary paperwork.
- Potential rate protection: Some lenders may offer the option to lock in an interest rate for a limited time.
FAQs about the mortgage pre-approval process
How long does it take to get pre-approved?
The pre-approval process can take a few days to a couple of weeks, depending on the lender and your financial circumstances.
When should I apply for a pre-approval?
It’s a good idea to apply for your pre-approval before touring any homes. Many sellers or agents expect you to have a pre-approval letter. Getting one before seeing homes in person can help you move faster if you want to make an offer.
What credit score is needed for a mortgage preapproval?
The credit score you need will depend on which loan you’re hoping to be pre-approved for. Loans like VA and FHA typically have lower credit score requirements. Most lenders like to see a 620 credit score for a conventional loan, but as of November 2025, that credit score is no longer required.
Do mortgage pre-approvals affect your credit score?
Mortgage pre-approvals usually have a minimal and temporary impact on your credit score. The credit check is considered a hard inquiry, but it typically results in only a slight decrease of a few points or less.
What do you do when you can’t get pre-approved?
If you’re unable to obtain pre-approval, consult with your lender to understand the reasons behind the decision. It may be that you need to improve your credit score, address outstanding debts, or consider alternative financing options.
Do you have to use the same lender for pre-approval and your loan?
No, you don’t need to use the same lender, unless you’ve signed a contract. If market conditions have changed since your pre-approval, you might be able to get a more favorable rate and terms. Even a slightly better deal could save you money over the long term.
What’s the best way to get pre-approved for a mortgage?
Start by researching reputable lenders and comparing their offerings. Submit complete and accurate documentation, respond promptly to lender requests, and maintain a good credit profile.
What factors are considered for pre-approval?
Lenders evaluate factors such as credit history, income stability, employment status, debt-to-income ratio, and the amount of funds available for a down payment.
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