View All Learning Articles
Is April 2024 a Good Time to Buy a Home?
The 100% HELPER Act Mortgage
The $25,000 Downpayment Toward Equity Cash Grant
The Biden $15,000 First-Time Homebuyer Tax Credit
$10,000 First-Time Home Buyer Mortgage Relief Credit
14 Grants & Programs for First-Time Home Buyers
View All Research Articles
170+ Mortgage Statistics
Generational Home Buyer Statistics
Annual HMDA Home Buyer Study
Most Popular Places for Vacation Homes In Every State
Gen Z Home Buyer Distribution By Location
Younger Millennial Home Buyer Distribution By Location
Older Millennial Home Buyer Distribution By Location
ZIP Code Invasions: Gen Z
ZIP Code Invasions: Younger Millennials
ZIP Code Invasions: Older Millennials
Dan Green
Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. Read more about Dan Green.
How We Make Money
Homebuyer.com is your trusted guide to homeownership. Since 2003, our team has offered real-world expertise and advice to tens of millions of U.S. home buyers. Our content stands on its integrity: it's factual, unbiased, and free from outside influences. Read our editorial guidelines.
Homebuyer.com is a mortgage-company-affiliated publisher. We earn compensation when you click specific links on the website, or apply for a mortgage with Homebuyer.com or a partner listed in our comparison tables. Our partners compensate us differently, so we randomize our tables to protect our readers from steering. We may also earn compensation for advertisements on the site, which are indicated clearly. Note that limitations in our software, whether we originate mortgages in your area, and credit factors may affect the offers and comparison tables you see on various parts of this site. We do not include offers for every mortgage product available. Someday, we hope we will.
Trusted Content
This article was checked for accuracy as of November 6, 2023. Homebuyer.com ensures every piece of information we share reflects the latest in mortgage standards. Learn more about our commitments in our editorial guidelines.
Getting pre-approved for a mortgage is straightforward, simple, and among the most important things you can do when you’re planning to buy a home.
Mortgage pre-approvals are documents that verify you can get approved for a mortgage loan. Pre-approvals don’t mean you have a final approval – only the green light to shop around and find the perfect home.
So, if you’re serious about buying a home, here’s how to get pre-approved for a mortgage.
A mortgage pre-approval is the questionnaire that’s the first step in buying a home. It tells a buyer which mortgages they can use and how much house they can buy.
With their mortgage pre-approval completed, buyers can shop confidently, knowing that their offer to purchase a home will get approved.
Pre-approvals perform a different function for mortgage lenders.
Your pre-approval is a dress rehearsal for your actual mortgage approval with a lender. A pre-approval uses your job, your credit, and a fictional home to find:
It can also use your pre-approval to estimate mortgage closing costs and make your final approval happen faster.
Freddie Mac suggests that getting pre-approved saves you money.
There is a formula for getting a mortgage pre-approval. No matter your lender, plan to follow these basic steps.
The most crucial part of buying a home is being sure you can afford its payment. So, before you get pre-approved, decide how much you feel comfortable spending each month and write that number down.
A mortgage lender may pre-approve you for a larger monthly payment. Stay within your budget.
Mortgage pre-approvals are available for free through most mortgage websites with no obligation to proceed. Many home buyers get their mortgage from a different mortgage company that pre-approved them. So, don’t overthink this step.
The critical part of getting your pre-approval is that you get it. Without a pre-approval, you cannot buy a home.
As part of your pre-approval, the lender may ask for supporting paperwork, including:
You don’t need them downloaded or on your hard drive in advance. Just know where to find these documents when you get asked.
Mortgage pre-approvals get processed online or in person. The simplest pre-approvals are self-service.
Home buyers can get a free mortgage pre-approval from any mortgage lender or do a self-service pre-approval in under three minutes at Homebuyer.com.
The difference between a pre-approval and pre-qualification is that mortgage pre-approvals get used to buy a home – pre-approval cannot.
Home sellers accept pre-approvals as proof of a good offer because pre-approvals get backed by lenders and double-verified. They include credit verification and an assessment of monthly income. A pre-approved buyer can afford to buy a home. Learn more about the differences between pre-approvals and pre-qualifications.
By contrast, pre-qualifications are weak.
They include no verifications or reviews by a lender. By definition, a pre-qualification is non-reliable as evidence of a buyer’s ability to buy. As a result, sellers don’t accept offers from pre-qualified buyers.
Get pre-approved in under three minutes.
The best time to get pre-approved for a mortgage is at least one year before you decide to purchase.
As a home buyer, pre-approvals are for your benefit, so it’s never too early to get one.
Getting pre-approved early is an advantage because one-third of mortgage applications contain an error. These errors can negatively affect your interest rate and ability to buy a home. Pre-approvals uncover those mistakes and give you time to fix them.
Getting pre-approved also sets your price range. Pre-approved buyers are less likely to overspend – or underspend! – on their residence as compared to buyers who use online mortgage calculators.
Get pre-approved before looking for your home.
Getting pre-approved lowers a buyer’s credit score by about five points temporarily. Credit scores range up to 850, so a five-point change is negligible.
Doing a pre-approval doesn’t ruin your credit. Many home buyers use pre-approvals to increase their credit scores instead. Pre-approvals include a credit report, and one-in-three reports contain errors. Buyers can correct those errors and get a higher score.
Higher credit scores are linked to lower mortgage rates.
Getting pre-approved takes a few minutes to ten days, depending on how and where you apply.
Here’s how long they take from fastest to slowest:
The traditional way to get pre-approved is to schedule an in-person interview with an officer of a bank. Pre-approval meetings are restricted to hours when the bank is open, and loan officers often require multiple days to review and pre-approve an application. Follow-up meetings may be required.
Another way to get pre-approved is to complete a mortgage application online via a mortgage lender website, and financial documentation including W-2 statements, tax returns, and pay stubs. A lender will generally confirm your information within one day.
Self-service pre-approvals are the fastest, easiest way for buyers to get pre-approved. Verifications are automatic. Buyers get instant answers in about three minutes, 24/7.
Mortgage pre-approvals are valid for 90 days after you get one. If mortgage rates rise by at least one percentage point, you’ll need to get a new one. Learn more about how long a pre-approval is good for.
When a pre-approval expires, it’s no longer valid as proof for purchase. You should never use an expired pre-approval to set a maximum home purchase price or to craft a household budget.
Expired pre-approvals can be renewed online or in person at any time.
Buyers with lender-assisted pre-approvals may get asked to provide additional financial documentation, including pay stubs and proof of residency.
Pre-approvals are also invalidated when a buyer changes jobs, income, or residence; or experiences an atypical drop in credit score.
Get mortgage pre-approved if yours has expired.
Yes, a home buyer can get turned down for a mortgage despite getting pre-approved.
There are a few common reasons why pre-approvals aren’t always honored.
Mortgage pre-approvals are test runs for a buyer’s actual mortgage approval. So, if the buyer’s credit score drops before finding a home, the buyer’s pre-approval may be invalidated.
In general, the minimum credit score requirements are:
A home buyer’s ability to repay its mortgage gets based on Debt-to-Income(DTI). DTI is the amount of debt a buyer has compared to their income.
Mortgage approvals cap a buyer’s debt-to-income ratio near 50 percent.
If the buyer’s debt rises but their income stays the same, the pre-approval may get revoked at the point of purchase.
Changing jobs – even for higher pay – can ruin your pre-approved mortgage.
If you plan to make any of the following changes in your job or career, ask your mortgage lender before making the change:
It’s okay to make changes in your career. Be sure to speak with your lender to avoid unintended consequences.
Mortgage pre-approvals simulate the purchase of generic homes at specific purchase prices. But, when buyers make offers on real homes, those approvals use real numbers.
As part of the final approval, lenders replace pre-approval numbers with real numbers:
If the newly-calculated housing payment is higher than expected, the buyer’s pre-approval may be invalidated.
The best time to get pre-approved is when you start thinking about homes. Pre-approved home buyers get better rates and better homes.
Getting pre-approved establishes your home purchase price range and minimum down payment and gives you time to edit and correct your credit.
Most importantly, though, pre-approvals indicate seriousness about buying a home.
Get pre-approved today in under 3 minutes.
Wave goodbye to waiting times and say hello to our Immediate Mortgage Approval. It's more than just a mortgage - it's your ticket to home-buying freedom, available anytime you are. With ultra-low rates at your fingertips, the power to secure your future is just a click away. Why wait for office hours? Your home doesn't.
Recent Mortgage News
Homes Selling Even 13% Faster This Spring – April 19, 2024
New Home Construction Paused For Home Buyers – April 18, 2024
The Worst Week For Mortgage Rates – April 17, 2024
Did You Miss The Low Mortgage Rates? – April 16, 2024
Tax Day: What Can Homeowners Claim? – April 15, 2024
What is a Warrantable Condominium?
Getting pre-approved for a mortgage is straightforward, simple, and among the most important things you can do when you’re planning to buy a home. Mortgage pre-approvals are documents that verify you can get approved for a mortgage loan. Pre-approvals don’t mean you have a final approval – only the green light to shop around and […]
Be a better buyer. Subscribe now and never miss out on exclusive insights, new market trends, and first-time buyer programs.
Finding your dream starts here. Apply in minutes.
About
Learn
Research