How to Get Pre-Approved for a Mortgage
A pre-approval letter shows sellers you’re serious and tells you exactly how much house you can afford. Follow these five steps and you’ll have your letter in as little as 24 hours.
Step 1 – Check Your Credit Early
- Most lenders require a 620+ score for conventional loans, 580+ for FHA.
- Pull a free report at AnnualCreditReport.com and dispute any errors.
- Pay down credit-card balances to under 30% of the limit for a quick score boost.
Step 2 – Gather Your Documents
Must-Have Paperwork
- Last 2 years of W-2s and tax returns
- 30 days of recent pay stubs
- 2 months of bank statements (all pages)
- Driver’s license or passport
- If self-employed: year-to-date profit & loss statement
Step 3 – Choose 2–3 Lenders
Rate quotes can vary by 0.25%–0.5%. Apply the same day so credit-score impact counts as one inquiry.
Step 4 – Fill Out the Application
You’ll answer questions about income, assets, debts, and the property you plan to buy. Most lenders let you upload documents securely online.
Step 5 – Wait for the Letter
- Automated underwriting: 1–2 hours
- Manual review: 1–3 business days
Your letter will state the loan amount, type, and how long it’s valid—usually 60–90 days.
How Long Does Pre-Approval Last?
Most letters expire after 60–90 days. If you haven’t found a house yet, lenders can refresh your credit and income with updated documents.
Does Pre-Approval Hurt My Credit?
Expect a 2–5 point dip that disappears after 30 days. Multiple mortgage inquiries within a 45-day window count as one.
Common Delays (and How to Avoid Them)
- New debt: Don’t open credit cards or auto loans during the process.
- Job change: Stay in your current role until after closing.
- Large deposits: Gift money needs a paper trail; cash deposits can’t be used.
Next Steps After Pre-Approval
- Start house hunting within your approved price range.
- Keep documents handy; you’ll re-submit for final approval.
- Once your offer is accepted, lock your rate and order the appraisal.