If you’re serious about buying a home, getting pre-approved for a mortgage is one of the most important first steps. Not only does it show sellers you’re a qualified buyer, but it also helps you understand exactly how much home you can afford before you start your search.

But what does the pre-approval process actually involve? Here’s what you really need to know—and what you’ll need to have ready.

1. Proof of Income

Your lender wants to confirm that you have a steady income to support your mortgage payments. Be prepared to provide:

• W-2 forms from the past two years

• Recent pay stubs (usually covering the last 30 days)

• Tax returns for the past two years

• If you’re self-employed, you’ll need two years of personal and business tax returns, plus a year-to-date profit and loss statement

2. Proof of Assets

Lenders will also want to verify your savings and other financial resources. You’ll likely need to provide:

• Bank statements from the past two to three months

• Retirement or investment account statements if you plan to use those funds for your down payment

• Documentation for gift funds, if family is helping with your purchase (including a letter stating it’s a gift, not a loan)

3. Credit Check

Your credit score is a key factor in determining your loan options and interest rate. Most conventional lenders look for a score of 620 or higher, though some programs allow lower scores with larger down payments or other compensating factors.

It’s a good idea to check your credit report beforehand and address any errors or outstanding debts that could affect your approval.

4. Employment Verification

Lenders typically contact your employer to verify your position, income, and employment history. If you recently changed jobs, you may need to provide additional documentation or offer letters showing stable future income.

5. Debt-to-Income Ratio (DTI)

Your lender will calculate your DTI ratio—the percentage of your monthly income that goes toward paying debts. In general, most lenders prefer a DTI below 43%, though some programs allow higher ratios depending on your credit and down payment.

6. Identification and Documentation

You’ll also need to provide:

• A valid photo ID (driver’s license or passport)

• Your Social Security number for the credit check

• Additional documents if applicable, such as divorce decrees, child support orders, or bankruptcy discharge papers

Why Pre-Approval Matters

Getting pre-approved helps you:

• Know your budget and shop confidently

• Stand out to sellers in competitive markets

• Avoid surprises later in the process by addressing potential issues early

Keep in mind that pre-approval letters usually last 60–90 days, so you’ll need to update your information if your home search extends beyond that window.

The Bottom Line

Getting pre-approved might seem like extra paperwork, but it’s one of the smartest steps you can take as a buyer. It sets clear expectations, strengthens your offer, and can make the entire process smoother and faster once you find the right home.

If you’re ready to start the home-buying process or need a recommendation for a trusted local lender, we’re happy to help you get started on the right foot.