Getting Pre-Approved for a Mortgage: What You Need to Know

Getting Pre-Approved for a Mortgage: What You Need to Know

Before you start touring homes, one of the smartest things you can do is get pre-approved for a mortgage. A pre-approval tells you how much you can borrow, helps you shop with confidence, and makes your offer stronger when you find the right home.

Pre-Qualification vs. Pre-Approval

Pre-qualification is a quick estimate based on information you provide. It's useful early on, but it carries less weight with sellers.

Pre-approval goes further. The lender reviews your credit and verifies your income, assets, and debts, then issues a letter stating how much you're approved to borrow, subject to final conditions. Sellers and their agents generally expect a pre-approval letter with an offer.

Documents You'll Typically Need

  • Government-issued photo ID
  • Recent pay stubs, usually covering the last 30 days
  • W-2s or 1099s for the past two years
  • Federal tax returns, especially if you're self-employed
  • Recent bank and investment account statements
  • Information about monthly debts such as car loans and student loans
  • Gift letters if family is helping with your down payment
  • DD-214 or Certificate of Eligibility for VA loans

How to Choose a Lender

Rates, fees, and service vary, so it's worth comparing. Consider local banks, credit unions, and mortgage companies. Ask each about:

  • Loan programs they offer, including FHA, VA, USDA, and conventional
  • Estimated interest rate and fees, shown on a Loan Estimate
  • Down payment assistance programs they work with
  • How quickly they can close and how they communicate

A local lender who knows the Central Missouri market can be a real asset, especially for rural properties and USDA loans.

How Long Does a Pre-Approval Last?

Pre-approval letters are usually valid for a limited time, often around 60 to 90 days. If your search takes longer, your lender can update it with new documents.

Protect Your Pre-Approval

Between pre-approval and closing, your lender will check your finances again. To avoid problems:

  • Don't open new credit cards or take out new loans
  • Avoid large purchases, like a car or furniture, on credit
  • Don't change jobs without talking to your lender first
  • Keep paying all bills on time
  • Document any large deposits into your bank accounts

Start Your Home Search With Confidence

Once you have your pre-approval letter, you know your price range and you're ready to act quickly. Browse our property search, and learn how to make a strong offer.

Need a Lender Recommendation?

Realty 365 agents can introduce you to trusted local lenders who know the Central Missouri market.

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Last updated: October 15, 2026