How to Get Pre-Approved for A Mortgage

Before you start scrolling listings or scheduling showings, there’s one thing that can make or break your home search: knowing what you can actually afford. That’s where pre-qualification and pre-approval come in. 

They sound similar (and are often used interchangeably), but they play very different roles in the home buying process. Here’s how to tell them apart, and why it matters more than you might think.

Key Takeaways:

• Pre-qualification gives you a quick estimate of what you might be able to borrow based on basic financial info you provide.
• Pre-approval goes a step further—your lender verifies your income, credit, and financial documents to give you a more solid loan amount.
• A pre-approval letter can give you a competitive edge when making an offer on a home.
• Start with pre-qualification if you’re just beginning to explore buying. Go for pre-approval when you're serious about making an offer.

What is Pre-Qualification?

Think of pre-qualification as a casual conversation with a lender. It’s usually a quick process (often done online or over the phone) that gives you an estimate of how much you could afford to borrow based on the financial details you provide, including:

• Your income
• Estimated debts
• Credit score range

No formal documentation is required, and no credit check is usually done at this stage.

When to Get Pre-Qualified for a Mortgage

• You’re just starting to think about buying a home.
• You want to know your price range.
• You’re not ready to submit documents or pull credit yet

Pros of getting pre-qualified:

• Fast and simple
• Can be done in minutes
• Helps you start budgeting
  
  

Cons of getting pre-qualified:

• Not based on verified information
• Not as reliable to sellers or real estate agents
  
  

What is Mortgage Pre-Approval?

Pre-approval is a more formal process that involves a deep dive into your finances. You’ll fill out a mortgage application and provide supporting documents, and your lender will pull your credit report. They’ll verify:

• Your income (through pay stubs or tax returns)
• Your assets (bank statements)
• Your debts
• Your credit history

Once everything is reviewed, your lender can issue a pre-approval letter, stating how much you’re approved to borrow. This letter shows sellers you’re a serious buyer and that your financing is already underway.

When to Get Pre-Approved for a Mortgage

• You’re actively house hunting
• You’re ready to make an offer
• You want to move fast in a competitive market
  
  

Pros of getting pre-approved:

• Shows sellers you’re a strong buyer
• Helps you shop with confidence
• Can speed up the loan process once you’re under contract
  
  

Cons of getting pre-approved:

• Takes more time and paperwork
• Requires a credit check (which may impact your score slightly)
  
  

Why the Difference Matters

The biggest difference between the two is that pre-qualification is based on what you say, and pre-approval is based on what you can prove. While both can be useful, only pre-approval carries real weight when it comes to making an offer.

Do I Need to Be Pre-Approved and Pre-Qualified?

Not necessarily. Many buyers start with a pre-qualification to get an idea of their budget, then move to pre-approval when they’re more serious. You can skip straight to pre-approval if you’re ready to buy and want to be taken seriously by sellers.

Some real estate agents won’t even show homes until you’ve been pre-approved—so it’s a smart move if you’re ready to hit the ground running!

We’re here to guide you through every step, from your first questions to closing day. And if you want to go the extra mile, our Home Buyer Edge Program can help you stand out with a Certified Home Buyer status, a rate cap to protect you from rising rates, and access to tools that give you an edge in a competitive market.