“A pre-approval letter is a pre-approval letter.”
Not All Letters Are Created Equal
Some lenders issue a letter off a credit pull alone, or no credit pull at all. If nobody looked at your income and assets, you don’t actually know if you qualify.
Just because you’re pre-approved doesn’t mean it’s a good pre-approval. A bad one can cost you the house. I build yours the way an underwriter will check it, starting with a soft credit check that never touches your score.
A mortgage pre-approval is a lender's review of your income, credit, debts, and savings that shows how much you can likely borrow. It comes with a letter you include with your offers so sellers know you're a qualified buyer. It isn't a final approval until underwriting and the appraisal are complete.
A pre-approval is different from a prequalification. A prequalification is a quick estimate based on what you tell us. A pre-approval means we've checked your credit and looked at your documents, like pay stubs, W2s, bank statements, and tax returns if you're self employed.
Your pre-approval letter shows a purchase price and loan type you qualify for. Most letters are good for about 90 days, and we update them as needed while you shop. Before closing, the loan still goes through full underwriting and the home has to appraise.
Get pre-approved before you start looking at homes. Most Realtors won't show homes without one, and sellers expect a letter with every offer. It also keeps you from falling in love with a house that's out of your budget.
If you're a few months out, it's still worth starting now. A pre-approval review can turn up things you'll want time to fix, like a credit report error, a collection, or a debt that's throwing off your ratios. It's much easier to handle those before you're under contract.
Once you're pre-approved, keep your finances steady. Don't open new credit, finance a car, change jobs, or move large amounts of money without talking to us first. Any of those can change your approval right when you need it most.
I walk through the five steps to a pre-approval that holds up when you find the house, and why a bad one can cost you.
“A pre-approval letter is a pre-approval letter.”
Some lenders issue a letter off a credit pull alone, or no credit pull at all. If nobody looked at your income and assets, you don’t actually know if you qualify.
“Getting pre-approved will wreck my credit.”
A soft credit check has no impact on your score and lets us build your whole file before any hard inquiry.
“I need to know which loan I want first.”
A good loan officer shows you every program you qualify for and the pros and cons of each. You don’t need to walk in with the answer.
This is exactly how we take you from “I think I want to buy” to a letter you can shop with.
Most buyers wait too long. They find a house they love on Zillow, try to go see it, and get told they need a pre-approval first. Ideally you start three to six months before you’re ready to buy.
Most people don’t actually know when they’re ready, because there are too many unknowns. If you’re thinking “I’d buy if I knew I could afford it,” that’s the time to reach out. If your credit needs work, start sooner, because some fixes don’t fit neatly in six months. The worst case is making an offer and then finding out you can’t get approved, or can’t get approved for as much as you need.
You have three choices: a bank or credit union, a big retail lender, or a mortgage broker. Each works differently, and the difference shows up in your rate, your fees, and how well you’re guided. Don’t just take whoever someone recommends. Put a broker or a second lender in the mix so you know you’re getting a good deal.
A pre-approval is more than a credit score. We look at your income, your credit, your monthly debts, and your funds to close. Income is the big one, and it’s why so many people get denied: the way you calculate your income and the way an underwriter calculates it are very different. You need a loan officer who thinks like the underwriter.
A W-2 employee usually needs pay stubs, W-2s, bank statements, and a photo ID. Self employed buyers need tax returns, 1099s, or business bank statements. What you send can raise new questions, and that’s normal. It’s better to sort it out now than in underwriting.
Nine times out of ten it’s online. It asks for your name, Social Security number, date of birth, two years of employment history, your income, and where your money is held. We pull most of your debts from your credit, but some things don’t show there. If you pay child support, alimony, or an IRS payment plan, tell us up front, or it will come up later at a worse time.
I’ve worked in all three. I’ve spent the last six years in the broker channel, and it’s been the best decision I’ve made for me and my clients.
Can be very competitive if you have high credit and a big down payment, especially if you already bank with them.
Companies that only do mortgages, often the ones running TV ads. Lots of managers and overhead to cover.
The fastest growing way people get mortgages. We shop your loan across hundreds of wholesale lenders.
Two people can both earn $100,000 a year and get approved for very different amounts. Someone with a 580 score can even get approved for more than someone with an 800. Here’s why.
The most important piece, and the most common reason people get denied. It has to be calculated the way the guidelines say, not the way you’d figure it.
Your score affects your programs and your rate. Your history matters too. More than one late payment in the last 12 months can stop a purchase.
The silent killer. Car loans, student loans, and credit card payments shrink the house payment you can qualify for.
Do you have your down payment and closing costs, or do we need the seller to cover some? We’ll tell you exactly what the deal needs.
Two buyers each earn $6,000 a month. At a 45% debt to income ratio, $2,700 a month can go to debts and the house combined.
That $800 a month in debts is the difference in what each buyer can purchase. And being approved for more doesn’t mean you should spend it.
Different jobs need different documents. Have these ready and the process moves fast.
Overtime or commission income is averaged over two years, so we may also get a verification of employment from your employer.
Whether we use tax returns, 1099s, or bank statements depends on the loan program that fits you best.
These don’t always show on your credit report, but they come up in underwriting. Better now than later.
Your pre-approval is a tool for making offers. In the hands of a good loan officer, it gets as close to a final approval as possible.
We move from information to verification. If your loan officer asks a lot of questions up front, you’ve probably got a good one.
If you’re approved for $350,000 but comfortable at $275,000, shop at $275,000. If a lender hasn’t shown you what the max costs each month, that’s a red flag.
An underwriter still reviews everything, and the appraisal still has to come in. A thorough pre-approval is what keeps you from surprises.
Send new pay stubs and bank statements as you shop, and W-2s when the year turns over. We only re-pull credit if it’s older than 90 days when you go under contract.
A mortgage pre-approval is a lender's review of your income, credit, debts, and savings that shows how much you can likely borrow. It comes with a letter you include with your offers so sellers know you're a qualified buyer. It isn't a final approval until underwriting and the appraisal are complete.
Ideally three to six months before you plan to buy. If you're not sure when you'll be ready, reach out as soon as you're thinking, I'd buy if I knew I could afford it. If your credit needs work, start even sooner, since some fixes take longer than six months. Either way, have your letter before you make an offer.
It doesn't have to. We start with a soft credit check, which has no impact on your score and costs you nothing. A hard pull happens eventually, and on lower credit files we sometimes need it earlier to run the automated underwriting system. A single mortgage inquiry shouldn't move your score much. The bigger hits come from applying for a mortgage, a car, and a credit card all at once.
A prequalification is usually based on what you tell the lender. A real pre-approval is built on your documents: your income, your assets, and your credit, checked the way an underwriter would check them. Some lenders hand out letters with just a credit pull or none at all, and those letters don't tell you much.
For a W-2 employee, usually 30 days of pay stubs, two years of W-2s, one to two months of bank statements, and a photo ID. Self employed buyers typically need tax returns, 1099s, or business bank statements depending on the program. Depending on what we see, we may ask for more, like a verification of employment if you earn overtime or commission.
The online application takes a few minutes. Once your documents are in, we review everything like an underwriter would, ask any clarifying questions, and walk you through your options, usually on a Zoom call so you can see the numbers.
It comes down to your gross income and your monthly debts. On $6,000 a month in gross income at a 45% debt to income ratio, $2,700 a month can go to debts and your house payment combined. If you already pay $1,000 a month in debts, that leaves $1,700 for the house. With $200 in debts, it leaves $2,500. Same income, very different budgets. And being approved for more doesn't mean you should spend it.
No. A good loan officer shows you every program you qualify for, FHA, VA, USDA, or conventional, and explains the pros and cons so you can choose. You don't need to walk in with the answer.
Banks and credit unions can be competitive if you have high credit and a big down payment, but they're often slower and can add requirements the guidelines don't. Big retail lenders tend to be the most expensive. A mortgage broker shops your loan across many wholesale lenders, which usually means better rates and lower fees, with a local person handling your file.
Child support, alimony, and IRS payment plans don't show on your credit report but still count against you. Tell us up front so they don't come up late in the process.
Your letter stays good as long as your situation doesn't change. Keep us updated with new pay stubs and bank statements, and W-2s when the year turns over. We don't keep re-pulling your credit. If your report is older than 90 days when you go under contract, we update it then.
Often yes. Programs like FHA and USDA are more flexible with lower scores and collections. Recent late payments matter most. If you're not ready yet, we'll tell you what to fix and how long it should take.
You don’t need to pick before you apply. These are the programs we’ll run side by side for you.
3.5% down with a 580 score, and more flexible on credit than most loans.
Learn More Buy$0 down and no monthly mortgage insurance for veterans and service members.
Learn More Buy$0 down for homes in eligible towns and suburbs.
Learn More BuyAs little as 3% down for first time buyers, with PMI that cancels at 20% equity.
Learn More BuyEvery program that can get you into your first home, compared side by side.
Learn More BuyHelp covering your down payment, usually paired with an FHA loan.
Learn MoreFifteen minutes gets you a real number instead of a guess, and the soft credit check costs your score nothing.
Real Closings
Real families we have helped get from pre-approval to keys in hand.
Pick one and I'll match you to the right loan, the real numbers, and the next step. Takes about 60 seconds — no credit pull, no obligation.