How to Get Pre-Approved
INTRODUCTION
If you’re planning to buy a home — especially new construction — getting pre-approved is the smartest first step you can take. A pre-approval tells you exactly how much you can afford, what your estimated monthly payment might be, and what loan programs you qualify for. It also shows sellers and builders that you’re a serious, financially ready buyer.
But many buyers don’t understand what a pre-approval actually involves or how to prepare for it. This guide walks you through the entire process in clear, simple terms, from choosing a lender to submitting documents to reviewing your loan options. Whether you’re buying in Washington, Oregon, or a Gallardo Homes community, these steps will help you feel confident and prepared.
Understand What Pre-Approval Means
A mortgage pre-approval is a written, conditional commitment from a lender stating how much they are willing to lend you based on your income, credit history, debt, employment, and financial profile. Unlike a prequalification — which is only an estimate — a pre-approval is backed by verified documentation and gives you real numbers you can rely on.
With a true pre-approval, you’ll know:
Your maximum purchase price
Your estimated monthly payment
Your interest rate range
How much you need for a down payment and closing costs
Which loan programs you qualify for
What you may need to improve before final underwriting
Builders and agents take pre-approvals seriously because they show you’re ready to move forward.
Check Your Credit Before Applying
Your credit score is one of the most important factors in getting pre-approved. Higher credit scores lead to lower interest rates and more loan options. Before you speak with a lender, check your credit report for accuracy and review your current debts.
Most lenders look for:
620+ for a conventional loan
580+ for many FHA loans
500–579 may still qualify with a larger FHA down payment
No minimum score officially required for VA and USDA, but 580–620+ is preferred
If your score is lower than you hoped, a lender or loan officer can guide you through quick, ethical ways to improve it — such as paying down balances, correcting errors, or lowering your credit utilization.
Understand Your Debt-to-Income Ratio (DTI)
DTI tells lenders how much of your monthly income already goes toward debt. The lower your DTI, the stronger your mortgage application looks.
Most lenders aim for:
36% or lower for total debt
43% is the typical max for conventional
Up to 50% may be allowed with strong compensating factors (savings, high credit, etc.)
DTI includes your future mortgage payment, car loans, credit cards, student loans, and any other recurring obligations.
Gather the Documents You’ll Need
Lenders must verify your financial details before issuing a pre-approval. Preparing these documents ahead of time speeds up the entire process.
You’ll typically need:
Last 30 days of pay stubs
W-2s from the past two years
Tax returns (2 years)
Bank statements (2–3 months)
Identification (driver’s license or photo ID)
Proof of additional income (bonuses, commission, child support if used, etc.)
Retirement and investment account statements
Business documents if self-employed
Having these ready makes your pre-approval much faster.
Choose the Right Lender — Not All Are the Same
The lender you choose will influence your interest rate, closing costs, overall experience, and loan options. It is always smart to compare a few lenders — or at least ask questions — before committing.
Things to consider when selecting a lender:
Do they offer competitive rates?
Are they familiar with new construction timelines?
Do they have strong communication and fast response times?
Do they educate buyers or just push paperwork?
Do they offer down payment assistance or special loan programs?
If buying a Gallardo Home, many buyers choose The Fornerette Team, a trusted partner familiar with the communities, timelines, and builder process — which makes everything smoother.
Submit Your Application
Once you choose a lender, you’ll complete a loan application with your personal, financial, and employment details. The lender then reviews your credit, analyzes your income, and checks your financial documents.
This stage often happens quickly — sometimes within the same day — depending on how prepared you are.
During this step, avoid:
Applying for new credit
Making large purchases
Transferring money between accounts without documentation
These actions can trigger red flags for underwriters and slow down your approval.
Review Your Loan Options and Estimated Payment
Your lender will present the loan programs you qualify for. These often include:
Conventional Loans
Popular for buyers with high credit scores and stable income.
FHA Loans
Great for first-time buyers due to flexible credit requirements and low down payments.
VA Loans
For eligible veterans and service members — often no down payment and excellent rates.
USDA Loans
Zero-down options for qualifying rural areas.
You’ll also receive a Loan Estimate, which outlines your interest rate, closing costs, and projected monthly payment. This document helps you comfortably set your homebuying budget.
Discuss Down Payment and Closing Cost Strategies
Many buyers assume they must put 20% down, but that’s not true. Most new-construction buyers put between 3% and 5% down — sometimes nothing at all, depending on the loan program.
Lenders can also help you explore:
Down payment assistance programs
Seller or builder credits (depending on incentives)
Ways to use gift funds
Interest rate buydowns
Your lender will help you find the option that best fits your budget.
Receive Your Pre-Approval Letter
Once the lender verifies your information, they issue a pre-approval letter showing your approved loan amount.
This letter:
Strengthens your offers
Allows builders to reserve homesites
Gives you confidence when shopping
Helps determine your monthly payment range
Most pre-approvals are valid for 60–90 days but can be updated easily.
Maintain Your Financial Stability Until Closing
Pre-approval is not the final loan approval — it’s the first major step. To avoid delays, continue making smart financial decisions.
Avoid:
New credit cards
Financing furniture or cars
Large deposits without documentation
Quitting or changing jobs
Keep your finances steady, and the final approval process is smooth.
CONCLUSION
Getting pre-approved is one of the most empowering steps in the homebuying journey. It clarifies your budget, strengthens your offers, and ensures you’re financially prepared before you fall in love with a home. When you choose a knowledgeable lender — like The Fornerette Team — and follow the right preparation steps, the pre-approval process becomes simple, fast, and stress-free.
Whether you're buying your first home or your next home in Washington or Oregon, this guide gives you everything you need to start with confidence.
