Getting Pre-Approved for a Mortgage
Most buyers finance at least part of their purchase, and the very first step is getting a clear picture of what you can afford. A pre-approval gives you a real budget, helps you focus on the right homes and makes your offer stronger when you find the one. Here's what to expect.
Pre-Qualification vs. Pre-Approval
Pre-Qualification
A quick estimate of what you might be able to borrow, based on the information you give the lender. It's a helpful starting point, but nothing has been verified yet.
Pre-Approval
A more formal review. The lender checks your credit, verifies your income and employment and looks at your assets. It's nearly everything a full approval includes except the appraisal and title work, and sellers take it much more seriously.
Keep in mind that neither one is a guarantee. Lenders still need the appraisal, final verification and sometimes a fresh credit check before they fund the loan.
What Your Lender Will Ask For
Having these ready will make the process faster:
- Your credit. The lender will pull your credit score and history. Scores run from 300 to 850, and higher scores usually mean better rates.
- Employment and income. Expect to share recent pay stubs, W-2s or tax returns, and your work history for the past couple of years.
- Assets. Recent bank and investment statements showing your down payment and closing cost funds.
- Debts. Car loans, student loans, credit cards and any other monthly obligations.
You may qualify for programs that make buying easier, like VA loans for veterans, FHA loans or Colorado down payment assistance through CHFA. A good lender will walk you through what fits your situation, and we're happy to connect you with lenders we trust.
Protect Your Approval Until Closing
Once you're pre-approved, try to keep your finances steady until you close. Check with your lender before you:
- Change jobs or quit
- Make a big purchase, like a car or furniture for the new place
- Open a new credit card or loan, or co-sign for someone
- Move large amounts of money or make large deposits you can't document
Any of these can affect your approval. If something comes up, just call your lender first. For more tips, see our home buying do's and don'ts.
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