Steps to Getting Pre-Approved for a Mortgage

For most homebuyers, securing a mortgage is an essential part of the process, with about 80% of buyers relying on financing, according to the National Association of Realtors. Getting pre-approved for a mortgage is one of the first and most important steps in your homebuying journey. It not only gives you an idea of how much house you can afford but also signals to sellers that you’re a serious buyer with the financial backing to make a purchase. While obtaining a mortgage can seem complicated, with some organization and preparation, you can get pre-approved and begin your search for a new home.

The first step is to gather your financial documents. Lenders will need to assess your financial health before issuing pre-approval, so be ready to provide proof of income, employment history, assets, credit history, debts, and identification. Organizing these documents in advance—such as pay stubs, tax returns, bank statements, and a valid ID—can expedite the process. Most lenders now allow you to submit documents via email or a secure online portal, making it easier than ever to gather everything you need.

Next, you should assess your budget to ensure you have a clear picture of how much house you can afford. This step can include getting prequalified for a mortgage, which offers a rough estimate of your buying power. A solid budget helps narrow your home search, and once you’re prequalified, you’re better prepared for the official pre-approval process. Many buyers find that using a mortgage calculator before approaching a lender can give them valuable insight into what to expect.

After gathering your documents and setting a budget, you’ll move on to the credit check portion of the pre-approval process. This step involves a hard inquiry on your credit report, which may temporarily lower your score, but rest assured, this is a normal part of the process. Lenders will evaluate your credit history to determine your loan eligibility and interest rate. Shopping around for different rates from various lenders within a 30- to 90-day window ensures that multiple inquiries only count as one, minimizing the impact on your credit score.

Getting pre-approved for a mortgage is a critical step that provides clarity on your buying power and demonstrates your seriousness as a buyer. With a little preparation and careful planning, you can streamline the process and move confidently toward purchasing your dream home.