Important points
A mortgage pre-approval is a formal letter from your lender stating the amount you can borrow, possible loan options, and interest rates. Lenders will evaluate factors such as your credit score, bank statement, W-2, and debt-to-income ratio (DTI) to determine your loan eligibility. A pre-approval letter strengthens your offer and shows the seller that you are a serious buyer.
If you’re planning on buying a home, getting pre-approved for a mortgage is an important step. Mortgage pre-approval is the process by which a mortgage lender evaluates your financial information to determine the amount of money they will lend you to purchase a home. This will help you set your budget and strengthen your position as a buyer.
This Redfin article outlines the steps to get pre-approved for a mortgage. Whether you’re looking to buy a home in Las Vegas, NV or a condo in Cincinnati, OH, learn how pre-approval can speed up your home buying process.
What is a mortgage pre-approval?
Mortgage pre-approval is an evaluation done by a lender to determine how much money they are willing to lend. During this process, you provide financial information to your lender, including your income, assets, debts, and credit history.
Lenders will consider these details to assess your creditworthiness and ability to repay your mortgage. Based on the evaluation, you will receive a pre-approval letter stating the loan amount you are eligible for.
How to get pre-approved for a mortgage in 5 steps
1. Research and choose a lender
Start by researching different mortgage lenders to find one that suits your needs. Find lenders that offer a wide range of loan options, loan terms (15 and 30 years), and compare interest rates, fees, and customer reviews. Some lenders specialize in first-time homebuyers or offer special programs to give you an advantage.
You don’t have to get a final mortgage from a lender who will pre-approve you. If you find a better offer later on, you can change lenders before finalizing your loan. It’s also a good idea to apply for pre-approval from at least two or three lenders to compare loan terms and ensure you’re getting the best deal.
2. Gather important documents
When getting pre-approved for a mortgage, it’s essential to provide the lender with a comprehensive view of your financial situation. Here are some important documents you need to collect.
Proof of income (pay stubs, W-2s, tax returns) Proof of employment Proof of assets (bank statements and investment account statements) Proof of identity (driver’s license or other government-issued identification) Social Security number
When purchasing a home, lenders will need to view your bank statements to make sure you have enough funds to cover your down payment and other costs. It is important to deposit all proceeds into your bank account so that the lender can confirm that you have the funds. You may also be required to file a tax return. Lenders typically need to see your income and tax liability for the past two years as part of their evaluation.
3. Check your credit score and debt-to-income ratio
A good credit score is essential for mortgage approval. First, obtain a copy of your credit report from one or more of the major credit bureaus (Equifax, Experian, TransUnion). If your score is lower than expected or there are issues with your report, take steps to improve your credit score before applying for pre-approval.
Your debt-to-income ratio (DTI) is your total monthly debt divided by your total monthly income. This ratio tells you how much you spend on monthly payments compared to your income. Most lenders prefer a DTI of less than 36%. This shows that you are managing your payments well and have enough income left over for additional expenses.
Lenders use credit scores and DTI to evaluate your creditworthiness and determine mortgage terms, such as interest rates and loan options. Generally, a higher credit score and lower DTI indicate that you have a history of managing your debt responsibly and are a more attractive borrower. This could result in more favorable loan options and better interest rates.
3. Request pre-approval
Once you have gathered all the necessary documents, you are ready to begin the application process. If you want to make an offer as soon as you start looking for a home, you may want to apply for pre-approval.
To apply for pre-approval, you typically need to fill out a detailed form provided by your lender. Provides information about your income, employment, assets, debt, and credit history. Please fill out the form accurately, as any errors or omissions may delay the pre-approval process or deny your application.
In addition to submitting the required documentation, you will need to approve a credit check. This allows lenders to evaluate your creditworthiness based on factors such as your credit score, payment history, and existing debt. A credit check is usually a hard inquiry that can drop your credit score by several points.
Once your application is submitted, your lender will carefully consider and evaluate the details you provide to determine whether you qualify for mortgage pre-approval.
5. Receive a pre-approval letter
If you meet the lender’s criteria, you will receive a pre-approval letter. This letter will outline the approved loan amount. This includes additional details such as the loan term, interest rate, and any conditions or contingencies that must be met. A pre-approval letter serves as proof to the seller or real estate agent that you have been pre-qualified by a lender and are a serious buyer.
It is important to note that a pre-approval letter does not guarantee a mortgage loan. Final approval is determined by additional factors, such as a fair housing evaluation of the property. Maintain open communication with your lender throughout the process and provide any requested updates or additional documentation as needed.
What to do after receiving your pre-approval letter
Once you receive your pre-approval letter, there are a few things you need to do to ensure the rest of the home buying process goes smoothly.
Understand how long your pre-approval is valid
Preapproval letters have an expiration date, so it’s important to know how long your preapproval is valid. Expiration dates vary, but are typically 60 to 90 days. Because financial circumstances can change over time, your pre-approval may expire.
Lenders want to make sure that the information they use to determine your pre-approval accurately reflects your current financial situation. Therefore, we set expiration dates to encourage borrowers to complete their home search and move forward with their mortgage applications in a timely manner.
If your letter expires before you find a home, you may need to reapply with your most recent financial documents. Some lenders may extend pre-approval, so be sure to check with your lender before submitting a new pre-approval application.
Don’t make big changes financially
Avoid making any major financial decisions if you have pre-approval. Examples include quitting your job to start a business, buying a new car, opening a new credit card, or jointly taking out a loan with a family member. This can change your financial stability when it’s time to apply for a mortgage, impacting your chances of a successful home purchase.
If you’re considering a major decision that could change your income or credit status, talk to your lender first to make sure it won’t prevent you from getting pre-approved for a mortgage. If something unexpected happens to your finances, talk to your lender to understand your options.
What is the difference between pre-approval and pre-screening?
Although pre-approval and pre-qualification are often used interchangeably, they have different meanings.
Pre-approval Letter: A pre-approval is a comprehensive evaluation in which a lender reviews information such as your W-2 and bank statements to thoroughly evaluate your creditworthiness. Pre-approval carries more weight and provides a stronger indication of your eligibility for a mortgage loan. Pre-qualification letter: Pre-qualification is an initial assessment of your financial situation based on the self-reported information you provide. It will give you a rough estimate of the amount you might be able to borrow, but it won’t outline the possible loan terms.
What is the difference between pre-approval and approval?
Mortgage pre-approval is an important step in the home buying process, but it shouldn’t be confused with final approval. Pre-approval is a preliminary evaluation that helps you understand your budget and strengthens your position as a buyer.
Even after your offer is accepted, you’ll still need to formally apply for a mortgage. However, there is no guarantee that the lender will approve your mortgage application. Final approval will be given after thoroughly considering the property you plan to purchase and conducting any necessary checks such as appraisal.
Why do I need to get pre-approved for a mortgage?
Getting pre-approved for a mortgage is important for several reasons. These are just some of the benefits:
Accurate budgeting: Pre-approval helps you understand how much you can borrow and set a realistic budget for your home search. Competitive Advantage: Sellers and real estate agents view pre-approved buyers as more serious and trustworthy, giving them an edge in the competitive housing market. Speeds up the closing process: Pre-approval speeds up the mortgage application process because most of the required documentation has already been submitted. Potential interest rate protection: Some lenders may offer you the option to lock in your interest rate for a limited period of time.
Frequently asked questions about the mortgage pre-approval process
How long does it take to get pre-approval?
The pre-approval process can take anywhere from a few days to a few weeks, depending on the lender and your financial situation.
When should I apply for pre-approval?
We recommend that you apply for pre-approval before viewing a home. Many sellers and agents expect to receive a pre-approval letter. Getting one before seeing the home in person will help you act quickly if you want to make an offer.
What credit score is required for mortgage pre-approval?
The credit score you need depends on which loan you want to get pre-approved for. Loans like VA and FHA typically have lower credit score requirements. Most lenders prefer to see a credit score of 620 for conventional loans, but as of November 2025, that credit score is no longer required.
Does a mortgage pre-approval affect my credit score?
Mortgage pre-approval typically has a minimal and temporary impact on your credit score. Although a credit report is considered a hard check, the drop is usually only a small drop, no more than a few points.
What if I can’t get pre-approval?
If you can’t get pre-approval, talk to your lender to understand the reasoning behind the decision. You may need to improve your credit score, address outstanding debt, or consider alternative financing options.
Do I need to use the same financial institution for pre-approval and loan?
No, you do not have to use the same financial institution unless you have a contract. If market conditions change after pre-approval, you may be eligible for more favorable interest rates and terms. Getting a little better deal can potentially save you money in the long run.
What is the best way to get pre-approved for a mortgage?
Start by researching reputable lenders and comparing their services. Submit complete and accurate documentation, respond promptly to lender requests, and maintain a good credit history.
What factors are considered for pre-approval?
Lenders will evaluate factors such as your credit history, income stability, employment status, debt-to-income ratio, and amount of funds available for a down payment.
