Mortgage Pre-Approval Guide

Your first critical step in the home buying journey. Show sellers you're serious and know exactly what you can afford.

What is Pre-Approval?

A mortgage pre-approval is a formal commitment from a lender stating that you qualify for a loan up to a specific amount, based on a rigorous check of your financial background. Unlike a simple pre-qualification (which is often based on self-reported data), a pre-approval carries weight because the lender has actively verified your income, assets, and credit history.

What Lenders Look For

Credit Score & History: Most conventional loans require a minimum score of 620, while FHA loans can accept lower scores. Lenders look for a history of on-time payments.
Debt-to-Income Ratio (DTI): This measures your monthly debt payments against your gross monthly income. Most lenders prefer a DTI below 43%.
Employment Verification: Stable employment (typically 2 years in the same industry) proves you have consistent income to support the mortgage.
Assets & Down Payment: Lenders verify your bank accounts to ensure you have enough funds to cover the down payment and closing costs.

The Pre-Approval Process

1

Check Your Credit

Lenders will pull a hard inquiry on your credit report. Ensure your score is accurate and resolve any errors beforehand.

2

Gather Documentation

Prepare W-2s, tax returns, pay stubs, and bank statements for the past 60 days.

3

Submit Your Application

Complete the official mortgage application (Form 1003) with your chosen lender.

4

Receive Your Letter

Once verified, you'll receive a pre-approval letter stating the exact loan amount you qualify for, valid for 60-90 days.

AI Mortgage Readiness

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Affordability Calculator

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Dwelli is an AI assistant, not a licensed agent, lender, or advisor. Information is educational only.