Jeni VanOrnum | Real Estate Insights & Education

Before you fall in love with that perfect starter home, you need to get pre-approved for a mortgage. Here’s what first-time buyers need to know.

What Is Pre-Approval?

A mortgage pre-approval is a letter from a lender stating how much they’re willing to loan you based on your financial situation. It’s different from pre-qualification—pre-approval involves a credit check and documentation review.

Why You Need It

In today’s competitive market, sellers often receive multiple offers. A pre-approval letter shows you’re a serious buyer with financing ready to go. Many sellers won’t even consider offers without one.

What You’ll Need

Lenders typically require:

• Two years of tax returns
• Recent pay stubs
• Bank statements
• Employment verification
• Credit report authorization

How Long Does It Take?

Most pre-approvals are completed within 1-3 business days, though it can vary by lender. The letter is usually valid for 60-90 days.

Important Considerations

Just because you’re approved for a certain amount doesn’t mean you should spend it all. Consider your comfort level with monthly payments, maintenance costs, property taxes, and insurance.

Pre-Approval vs. Final Approval

Remember, pre-approval isn’t a guarantee. Your final mortgage approval happens after you’ve found a home and the property has been appraised.

Next Steps

Once pre-approved, you’re ready to start house hunting with confidence. As your real estate consultant, I can recommend trusted local lenders who specialize in first-time buyer programs.