Buying, step one
Get pre-approved before you fall for a house.
Pre-approval comes before the house hunt because it tells you the real budget, and it tells a seller your offer can close. It is free, it takes about half an hour, and it is not a commitment to borrow.
This links to a lender Chris works with, and you are free to use any lender you choose.
Why it comes first
The letter before the listings
Touring houses before a lender has looked at your finances is how people fall for a house they cannot buy, or talk themselves down from one they could. A pre-approval settles the ceiling first, from your actual income, savings and credit, so every showing after that is a house you can make an offer on.
It also changes the offer itself. A Lafayette seller comparing two offers will take the one with a pre-approval letter over the one without, because it is the one with evidence behind it. And the questions that stall a closing, a gap in employment, a large deposit, a debt you forgot, get answered now rather than in the week before the act of sale.
What it changes
Three things a pre-approval does for an offer
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A seller takes it seriously
The letter shows a lender has already checked your income and credit, so your offer reads as one that can close.
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You know the real ceiling
Not a website's guess. The rate and the maximum a lender will actually lend you, with Louisiana insurance costs in view.
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Fewer surprises at closing
Documentation questions get answered before you are under contract, not during the inspection period.
Before you start
What to have ready, so the application does not stall
Gather these first and the application takes one sitting.
- Identification
- A driver's license or passport, and your Social Security number.
- Income
- Pay stubs covering the last 30 days and W-2s for the last two years. Self-employed: two years of tax returns.
- Recent statements
- The last two months of bank, retirement and investment statements, every page.
- Monthly debts
- Car loans, student loans, card minimums, child support. The lender pulls most of it; a list saves questions.
- Where you live now
- Two years of addresses, and the landlord's contact details if you rent.
- Gift funds
- If family is helping with the down payment, a signed gift letter and a record of the transfer.
How it works
From application to the first showing
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Start the application
On the lender's secure site, which opens in a new tab. Your details go to the lender directly; nothing you type there passes through this website.
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The lender reviews it
They check income, assets and credit, and ask for anything missing. This is the step that usually takes one to three business days.
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You get the letter
A pre-approval letter with the amount and the loan type, which goes with every offer you make.
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Then the house hunt
Chris sets up showings inside the budget you now know, and represents you from the first tour through the closing.
Not ready to apply
Run the numbers first
The mortgage calculator shows a payment with taxes, homeowners and flood insurance, PMI and dues, and what the common lending guidelines allow on your income. Questions about any of it are welcome.
Pre-approval questions
What people ask before they apply
What is the difference between pre-approval and pre-qualification?
A pre-qualification is an estimate from what you tell a lender, usually without checking anything. A pre-approval is the lender actually reviewing your income, assets and credit and stating, in a letter, how much it is prepared to lend subject to the house. Sellers treat the two very differently, and in a competitive listing an offer without a pre-approval letter is often set aside.
Does getting pre-approved hurt my credit?
A pre-approval usually involves a hard credit inquiry, which can lower a score by a few points for a while. Credit scoring models treat several mortgage inquiries within a short window, typically 14 to 45 days depending on the model, as a single inquiry, so comparing lenders inside that window counts once.
How long does pre-approval take?
The application itself takes about 20 to 30 minutes with your documents at hand. A letter often follows within one to three business days, sooner when nothing needs explaining. Missing paperwork is the usual reason it takes longer, which is why the list on this page exists.
Is a pre-approval binding?
No, on either side. You are not obligated to borrow from the lender that pre-approved you, or to borrow at all. The lender's letter is conditional too: final approval comes after the appraisal, the title work and underwriting on the specific house, and a change in your income or debts before closing can change the answer.
What do I need to get pre-approved?
Photo identification, your Social Security number, the last 30 days of pay stubs, two years of W-2s (or two years of tax returns if you are self-employed), two months of bank and investment statements, and a list of your monthly debts. If family is helping with the down payment, the lender will ask for a gift letter as well.
Check it yourself
Sources you can use directly
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Consumer Financial Protection Bureau
How pre-approval, loan estimates and closing disclosures work, from the federal regulator.
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FEMA flood map
The flood zone for an address decides whether a lender requires flood insurance. Check it before you offer.
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Verify a license
Louisiana licenses are public record. Search a license number before you sign anything with any agent, including this one.
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REALTOR® standards
The code of ethics a REALTOR® is bound by, and what the 2024 changes to buyer representation require.
Related
Where to go next
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Mortgage calculator
A payment with the taxes, homeowners and flood insurance, PMI and dues left in.
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First-time buyers
Down payment help, USDA eligibility and what closing actually costs.
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Relocating here
Housing stock, commutes and insurance, before you pick a street.
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Buying in Acadiana
Representation from the first showing through the closing.