Getting Pre-Approved: Your First Step to Buying
A pre-approval is a lender's written estimate of how much you can borrow, based on a real review of your income, savings, debts and credit. It tells you your price range before you fall in love with a home, and it shows sellers you're ready to buy. Most sellers expect one with your offer.
Pre-qualified vs. pre-approved
Pre-qualification is a quick estimate based on what you tell the lender. Pre-approval means the lender has checked your documents and usually your credit. When you're ready to tour homes, a pre-approval is the one you want.
What you'll usually need
- Pay stubs from the last 30 days
- W-2s or tax returns from the last two years (more if you're self-employed)
- Bank statements from the last two months
- A photo ID
- A list of your monthly debts, like car loans, student loans and credit cards
My tips
- Compare two or three lenders. Ask each for a Loan Estimate and compare the rate, fees and cash to close, not just the rate.
- Shop lenders within a couple of weeks. Credit scoring usually counts several mortgage credit checks in a short window as one.
- Ask about programs. FHA, VA and USDA loans and Texas down payment assistance can lower what you need up front.
- Hold off on new credit. Don't open new cards, finance furniture or change jobs until after closing if you can help it.
- Watch the date. Pre-approvals expire, often after about 60 to 90 days, so get one when you're ready to shop.
Not sure where to start? Call or text me at (512) 629-9050, and I'll help you plan your next move.
Step 5 of 10: Get pre-approved
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