If you’re thinking about buying a home, you’ve probably heard that you should “get pre-approved first.” But what does that actually mean—and why is it so important?
At Homeperk, we help first-time homebuyers every day who are just starting the journey. One of the best early moves you can make is to get pre-approved for a mortgage. Here’s everything you need to know about what it is, how it works, and how it helps you move forward with confidence.
🏦 What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a letter from a lender that says you’re conditionally approved for a home loan up to a certain amount. It’s based on a full look at your financial information—including:
- Credit score
- Income
- Employment
- Debt-to-income ratio
- Assets and savings
The lender uses this info to estimate how much you can borrow, what your monthly payment might be, and what kind of loan terms you might qualify for.
✅ Pre-approval is different from pre-qualification.
Pre-qualification is based on self-reported information (such as your income) and is more of a ballpark estimate. Pre-approval is verified and stronger, which is why sellers take it seriously.
💡 What a Pre-Approval Letter Includes
Your pre-approval letter will usually state:
- The maximum loan amount you’re approved for
- The type of loan (FHA, conventional, VA, etc.)
- The estimated interest rate (subject to change)
- The expiration date (these can be good for up to a year)
You can show this letter to real estate agents and sellers to prove you are a serious, qualified buyer.
🔑 Why Getting Pre-Approved Matters
- You Know What You Can Afford
No more guessing—pre-approval helps you understand your price range and monthly payment before you start shopping.
- You’ll Be a Stronger Buyer
In competitive markets, sellers often choose buyers who are pre-approved. It shows you’re ready to go and already working with a lender.
- You Can Move Faster
Once your offer is accepted, you’ll already have a head start with your lender—making the mortgage process faster and smoother.
- You Can Fix Problems Early
If your credit, income, or debt needs attention, the pre-approval process helps you catch that before you’re under contract. (And if that’s the case—Homeperk can help.)
📝 What You’ll Need to Get Pre-Approved
Getting pre-approved means providing some documents to your lender, including:
- Recent pay stubs
- W-2s or tax returns
- Bank statements
- ID (driver’s license or Social Security card)
- Consent to pull your credit
Don’t worry—this process isn’t as scary as it sounds, and many lenders can do it online in just a few days and sometimes in just a few hours.
🧭 When Should You Get Pre-Approved?
Before you start house hunting. That way, you:
- Avoid falling in love with a home you can’t buy
- Make stronger offers
- Save time by focusing only on homes within your budget
If you’re not ready yet, that’s okay too. At Homeperk, we help people get ready for pre-approval—whether that means boosting your credit, understanding your debt-to-income ratio, or figuring out what kind of home you can qualify for.
First-time homebuyers can qualify for a mortgage with as little as 3% down* and HomePerk can help you cover the downpayment or closing costs.
🏡 Final Thoughts: Pre-Approval = Power
Mortgage pre-approval gives you clarity, credibility, and control. It’s the first big step from dreaming about a home to actually owning one.
And with Homeperk by your side, you don’t have to do it alone. Whether you’re ready to get pre-approved now—or want help getting your finances in shape first—we’re here to guide you, for free.
👉 Reach out to Homeperk today and take the first step toward homeownership.
*Down payment assistance offered pursuant to your employer’s down payment assistance benefit plan and is accomplished through an unsecured down payment assistance loan. The down payment assistance loans may be provided by CharlieMike Financial, Inc. or other partner banks or credit unions. Certain restrictions apply. Subject to borrower qualification and subject to obtaining a mortgage from an eligible mortgage partner.
$0 down is based on obtaining a mortgage for 97% of the purchase price of your home from an eligible mortgage partner and funding the other 3% of the purchase price with a down payment assistance loan. The down payment assistance loan has a term of 60 months and the borrower experiences an interest rate of 0% (actual note rate 12%), assuming all principal payments are made when due by the borrower, as the result of the rate being permanently bought down. Buydown funds may not be redeemed for cash or credit and are nontransferable. The monthly payment on a $10,000 loan at 0% interest for a 60-month term is $166.67. Subject to certain conditions.