Thinking About Buying a Home? Let’s Talk About Pre-Approval

Why this simple first step can make your home search smoother and your offers stronger.

What is Pre-Approval? Pre-approval is when a lender reviews your financial situation and gives you a written estimate of how much money you can borrow for a home.

Pre-approval is important for a few reasons. For starters, it gives you a clear picture of the price range you should be looking at in your home search (and it might not be what you expected!). Some people get approved for more or less than they thought they would. On top of getting pre-approved, I always tell my clients to think about what they feel comfortable spending.

Having a pre-approval can also make a big difference when you’re ready to make an offer. Sellers are much more likely to take your offer seriously if they know you’re pre-approved. It shows that you’re ready to move forward and can secure financing.

So, how do you actually get pre-approved? The three main types of lenders who handle pre-approvals are banks, credit unions, and mortgage companies. Any of these can work depending on what you’re most comfortable with. If you’re looking for an expert for a specific loan type (like VA, FHA, or first-time home buyer programs) I’d be happy to give you personalized recommendations.

When reviewing your application, lenders typically consider your credit score, your income and employment history, your debt-to-income ratio, and your down payment. Knowing these factors ahead of time can help you be prepared and confident as you start your home buying journey.