Jeni VanOrnum | Real Estate Insights & Education

Pre-approval is your crucial first step in 2025. I’m Jeni VanOrnum, your Douglas County real estate agent, walking you through the pre-approval process.

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

Pre-qualification is a quick estimate based on self-reported information with no verification. Pre-approval is comprehensive—lenders verify your income, assets, credit, and employment, providing a commitment letter. In Douglas County’s 2025 market, sellers take pre-approved buyers seriously while pre-qualified buyers often get overlooked.

Documents You’ll Need

Gather two years of tax returns (all pages including schedules), recent pay stubs covering last two months, two months of bank statements for all accounts, employment verification letter or contact information, valid identification (driver’s license or passport), and documentation of other income sources. Self-employed first-time buyers need additional documentation including profit/loss statements and business tax returns.

Your Credit Score Matters

Lenders pull credit from all three bureaus (Experian, Equifax, TransUnion). Scores above 740 get best rates and terms, 680-739 get good rates, 620-679 get standard rates, and below 620 may need FHA or special programs. Before applying, check your credit report for errors at annualcreditreport.com and pay down credit card balances below 30% of limits—this boosts your score quickly.

Debt-to-Income Ratio Explained

Lenders calculate 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, personal loans, and other obligations.

The Pre-Approval Process

Choose a lender experienced with Douglas County first-time buyers and current 2025 programs. Complete the application (typically 30-60 minutes online or in person), provide all requested documentation promptly, and wait 2-5 business days for underwriting review. Your pre-approval letter specifies maximum loan amount and is typically valid for 60-90 days.

Shopping for Lenders in 2025

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. Ask about closing costs, processing timelines, and lender reputation.

Local Lender Advantages

Douglas County-based lenders understand local property values, typical appraisal timelines, and have established relationships with title companies. They can often close faster and handle unique situations better than national online lenders.

Get Pre-Approved Today

Contact Jeni VanOrnum for referrals to trusted Douglas County mortgage lenders specializing in first-time buyers in 2025.