How to Get Pre-Approved for a Mortgage

Learn the step-by-step process to get mortgage pre-approval, what documents you need, and how it helps when house hunting.

1. Check your credit score and gather financial documents. Pull your credit report from annualcreditreport.com and check your score through your bank or credit card company. Gather 2 years of tax returns, recent pay stubs, bank statements for all accounts, and documentation of any other income sources. Most lenders want to see a credit score of 620 or higher for conventional loans, though some programs accept lower scores.
2. Calculate how much house you can afford. Use the 28/36 rule as a starting point: your monthly housing payment shouldn't exceed 28% of gross monthly income, and total monthly debt payments shouldn't exceed 36%. Include property taxes, insurance, and HOA fees in your housing calculation. This gives you a realistic target before lenders tell you their maximum.
3. Shop around with multiple lenders. Apply with 3-5 different lenders within a 14-45 day window so credit inquiries count as one for scoring purposes. Compare banks, credit unions, and mortgage brokers. Each will run a hard credit check and review your documents to determine how much they'll lend and at what interest rate.
4. Submit your formal pre-approval application. Choose your preferred lender and complete their full application with all required documents. The lender will verify your employment, income, assets, and debts. This process typically takes 3-10 business days and results in a pre-approval letter stating the loan amount, estimated interest rate, and expiration date.
5. Use your pre-approval letter strategically. Include the pre-approval letter with every offer you make on a home. It shows sellers you're a serious buyer with confirmed financing, making your offer more competitive. Remember that pre-approval letters typically expire after 60-90 days, and you'll need final approval after you're under contract.