Getting Pre-Approved: Step by Step

Pre-approval is your ticket to making competitive offers. A pre-approval is a verified commitment — the lender has reviewed your credit and income and stands behind a specific loan amount. Here's exactly what lenders look for and how to put your best foot forward.

Documents you'll need

• ▸Income verification: last 2 years of W-2s or 1099s, recent pay stubs (30 days), 2 years of tax returns (especially if self-employed).
• ▸Asset documentation: 2 months of bank statements for all accounts, investment account statements, gift letters if using family funds.
• ▸Identity & credit: government-issued ID, Social Security number, 2 years of residency history.

Pre-qualification vs. pre-approval

They are not the same:

• ▸Pre-qualification is based on self-reported numbers — a lender's estimate, not verified. Fast but weak.
• ▸Pre-approval requires a hard credit pull and document review — a conditional commitment. Sellers take it seriously.

In a multiple-offer situation, a pre-approved buyer routinely beats a pre-qualified buyer at the same price.

How to strengthen your application

1. Don't open new credit in the months before applying — inquiries and new accounts ding your score and worry underwriters.
2. Pay down balances to lower your credit utilization — the fastest score boost available.
3. Stabilize employment — job-hopping during underwriting raises flags.
4. Document large deposits — underwriters trace every non-payroll deposit over ~$500; gift funds need a gift letter.
5. Check your DTI — aim under 43%, ideally under 36%. Use the What-If Studio to model it.

Shop multiple lenders

Get Loan Estimates from at least three lenders within a 14-day window — all count as a single credit inquiry for scoring. Compare APR (not just rate), origination charges, and the 5-year cost on page 3. The Document Decoder flags padded fees so you negotiate from data, not trust.