Before you fall in love with a charming front porch or a killer view, there’s one essential move that sets the tone for your entire home-buying journey: getting pre-approved for a mortgage.
Pre-approval isn’t just a formality. It shows sellers you’re serious, helps you shop within your budget, and gives you a head start on the financial side of homeownership — before emotions and urgency take over.
In short, it’s the smartest way to begin.
What Does Pre-Approval Mean?
Pre-approval is a lender’s written estimate of how much they’re willing to let you borrow based on a review of your income, assets, debts, and credit history. It’s more formal than pre-qualification, which is usually just a rough estimate based on self-reported numbers.
With pre-approval, the lender pulls your credit report, verifies your documents, and gives you a conditional commitment for a specific loan amount.
This does a few important things:
It gives you a clear price range for your home search.
It signals to sellers that you’re a serious, qualified buyer.
It helps you catch and resolve potential credit or documentation issues early.
Why Pre-Approval Matters to Sellers
In a competitive market, a pre-approval letter can be the difference between your offer being accepted or ignored. According to a 2022 Zillow survey, 86% of sellers prefer buyers who are pre-approved over those who aren’t.
That’s because sellers want confidence. When you submit an offer with a pre-approval letter, you’re showing:
You’ve already taken steps to secure financing.
You’re not just browsing — you’re ready to move quickly.
You’re less likely to have your financing fall through before closing.
Even if the market isn’t hot, pre-approval gives you leverage in negotiations and keeps the process moving smoothly.
Safely Store the Documents You'll Need
Once you’re pre-approved, you’ll start collecting and sharing a lot of financial documents — pay stubs, W-2s, tax returns, account statements, and more.
With Trustworthy's Family Operating System®, you can safely store your most sensitive financial documents in a digital vault designed for security and peace of mind — whether you're sharing them with your lender, your spouse, or just keeping them handy for your own records.
What You'll Need for Pre-Approval
Getting pre-approved isn’t difficult, but it does require a little preparation. Lenders typically ask for:
Recent pay stubs (usually the last 30 days).
W-2s or 1099s from the past two years.
Tax returns from the past two years.
Bank and investment account statements.
Information on outstanding debts (credit cards, loans, etc.).
A government-issued ID.
Permission to pull your credit reports.
If you're self-employed, retired, or have non-traditional income, you may be asked for additional documentation to verify your financial stability.
How Much Can You Afford?
Pre-approval gives you an upper limit — but that doesn’t always mean you should spend the full amount.
As you review your budget, factor in:
Estimated monthly mortgage payments.
Property taxes and homeowners insurance.
Utilities and maintenance costs.
Any HOA fees or special assessments.
Emergency savings for unexpected repairs.
Aim to stay within a range that gives you room to breathe — especially if you’re planning for other financial goals like retirement, education, or travel.
How Long Does Pre-Approval Last?
Most pre-approvals are valid for 60 to 90 days. If you haven’t bought a home within that window, your lender may need to refresh your application with updated documents or another credit check.
To avoid surprises, keep your financial situation stable during this time:
Avoid opening new credit accounts.
Don’t make large purchases on credit.
Hold off on changing jobs if possible.
Even small changes can affect your debt-to-income ratio and jeopardize your loan approval later.
The Bottom Line
Getting pre-approved is more than just a box to check — it’s the foundation of a smart, secure home-buying experience. It helps you search with clarity, negotiate with strength, and avoid heartbreak over homes you can’t afford.
By preparing early, gathering your documents, and keeping them secure and accessible with tools like Trustworthy, you’ll be ready to make the right move when the right home comes along.
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