Jeni VanOrnum | Real Estate Insights & Education

Getting pre-approved for a mortgage is the crucial first step in your home buying journey. I’m Jeni VanOrnum, your local Douglas County real estate agent, and today I’m walking you through the pre-approval process so you can confidently shop for your first home in 2023.

Pre-Qualification vs. Pre-Approval: Know the Difference

Pre-qualification is a quick estimate based on self-reported financial information. Pre-approval is comprehensive—lenders verify your income, assets, credit, and employment. In Douglas County’s competitive market, sellers take pre-approved buyers seriously while pre-qualified buyers often get overlooked.

Documents You’ll Need

Gather two years of tax returns, recent pay stubs (typically last two months), two months of bank statements for all accounts, employment verification, and identification. Self-employed first-time buyers need additional documentation including profit and loss statements and business tax returns.

Your Credit Score Matters

Lenders pull credit from all three bureaus. Scores above 740 get the best rates, while FHA loans accept scores as low as 580. Before applying, check your credit report for errors and pay down credit card balances to below 30% of limits—this can boost your score quickly.

Debt-to-Income Ratio Explained

Lenders calculate your DTI by dividing monthly debt payments by gross monthly income. Most conventional loans require DTI below 43%, though some programs allow up to 50%. This includes your future housing payment, car loans, student loans, credit cards, and other obligations.

The Pre-Approval Process

Choose a lender experienced with Douglas County first-time buyers. Complete the application (30-60 minutes), provide documentation, and wait 2-5 business days for underwriting review. Your pre-approval letter specifies your maximum loan amount and is typically valid for 60-90 days.

Shopping for Lenders

Don’t settle for the first lender you contact. Compare rates, fees, and customer service from at least three lenders. Multiple mortgage inquiries within 45 days count as one credit pull, so shop without fear of hurting your credit score.

Local Lender Advantages

Douglas County-based lenders understand local property values, appraisal timelines, and title company partnerships. They can close faster and handle unique situations better than national online lenders.

Ready to Get Pre-Approved?

Contact Jeni VanOrnum today for referrals to trusted Douglas County mortgage lenders who help first-time buyers. Getting pre-approved is your first step toward homeownership in Castle Rock, Parker, or Highlands Ranch