Pre-approval is one of the most practical steps you can take before you start seriously looking at homes. It tells you what you can realistically borrow, shows sellers you're prepared, and can speed up the path to closing once you find the right place.
What Pre-Approval Actually Means
A pre-approval letter indicates that a lender has reviewed your income, credit, assets, and employment — and based on that review, is willing to lend you up to a stated amount. It's not a final loan commitment; the specific property still needs to be evaluated, and your financial picture needs to remain stable. But it's a meaningful step beyond a quick pre-qualification estimate.
Pre-approval is tied to you as a borrower, not to a particular home. That means you can use it as you shop, and once you're under contract, you'll move into the full underwriting process.
Documents You'll Typically Need
Every lender's list varies, but most pre-approvals involve gathering:
- Proof of income — W-2s, recent pay stubs, or tax returns if you're self-employed
- Employment verification — your lender wants to confirm steady income and continued employment
- Identification — a government-issued ID and your Social Security number for a credit pull
- Bank and asset statements — to confirm you have funds for a down payment and reserves
- Credit history — lenders will run a hard credit inquiry as part of the process
Self-employed borrowers often need to provide additional documentation, such as profit-and-loss statements or multiple years of tax returns.
Why Getting It Early Matters
In a competitive market, sellers often favor offers from pre-approved buyers because there's less uncertainty. It also gives you time to address any issues — a lower credit score, an old collection account, a higher-than-expected debt load — before you're under contract and on a deadline.
Even if your timeline is flexible, starting the pre-approval process early gives you a clearer picture of your budget and helps you focus your home search.
We Offer Pre-Approval PLUS+
At First Look Home Loans, our Pre-Approval PLUS+ goes a step further than a standard pre-approval letter — it's a fully underwritten commitment designed to make your offer as strong as possible. If you're ready to take that step, start your application here.
