Quick answer: A mortgage pre-approval is a lender's written estimate of how much you can borrow, based on a real look at your income, assets, debts and credit. To get one, you fill out an application with a lender and share documents like pay stubs, W-2s and bank statements. It often takes just a few days, and it's the first thing you should do before touring homes.
Almost every first-time buyer I work with asks, "Where do I even start?" My answer is always the same: get pre-approved. Here's how it works, in plain English.
Pre-qualified vs. pre-approved: what's the difference?
A pre-qualification is a quick estimate based on what you tell the lender. A pre-approval goes further: the lender checks your credit and reviews your documents. Sellers take a pre-approval much more seriously, so that's the one you want.
Why get pre-approved before you shop?
You'll know your budget. No falling in love with a home that doesn't fit.
Your offers are stronger. Most sellers expect a pre-approval letter with your offer.
You can move fast. Good homes can go quickly. Being ready means you won't miss out.
What documents do you need?
Every lender is a little different, but most will ask for:
Recent pay stubs (usually the last 30 days)
W-2s from the last two years
Recent bank statements
A photo ID
Tax returns, especially if you're self-employed or earn commission
Details on any gift money for your down payment
Tip: gather these in one folder before you apply. It makes the whole thing faster.
How long does pre-approval take?
Often just a few days once your documents are in. Some lenders can turn it around in a day. If your income is more complex, it can take a little longer.
How long is a pre-approval good for?
Pre-approval letters are good for a limited time, often around 60 to 90 days, depending on the lender. If your search runs longer, your lender can update it.
Will getting pre-approved hurt my credit?
A pre-approval usually includes a credit check, which can cause a small, temporary dip. Credit scoring models generally treat several mortgage inquiries within a short window as a single inquiry, so comparing lenders is okay. Ask your lender how they pull credit.
What to avoid after you're pre-approved
Don't open new credit cards or loans
Don't finance a car or big furniture purchase
Don't change jobs without talking to your lender
Don't move large sums of money without a paper trail
Your lender checks again before closing, so keeping things steady protects your loan.
How to choose a lender
Look for a lender who explains things clearly, answers quickly and gives you a written Loan Estimate. I'm happy to connect you with lenders my clients have loved working with.
FAQs
What's the difference between pre-qualification and pre-approval?
A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval is based on a credit check and a review of your documents, so sellers take it more seriously.
Do you have lenders you can recommend to me?
Yes! I will always recommend preferred lenders that you can choose to use. I have gone through MANY great and not so great ones throughout the years, so really know the difference. My lenders are top tier, honest, and knowledgable.
How long does a mortgage pre-approval take?
Often just a few days after you send your documents, and sometimes faster.
How long is a pre-approval letter good for?
Usually a limited time, often around 60 to 90 days depending on the lender. Your lender can update it if your search runs longer.
Ready to get started? See my first-time buyer roadmap or send me a message and I'll connect you with a great local lender. Next, read how much money you need to buy a house in Wisconsin.
About the author
Kaeley Simek, REALTOR® helps buyers and sellers across Milwaukee, Waukesha, Washington, Kenosha and Walworth Counties. She's a Real Trends Verified top 1.5% agent nationally. In her words: “I take great pride in doing everything I can to give you the ultimate buying or selling experience. My top values are communication, honesty, kindness and having the heart of a teacher: guiding you and explaining your options so you can make great decisions. I’m extremely experienced with unique and tough challenges, and I love to negotiate.” Questions? Call or text 414-501-7880 or send her a message. She replies within 2 hours (before 8 pm).
This article is general information, not legal, tax or lending advice. Loan programs and rules change, so confirm details with your lender and agent.
