Getting pre-approved.
A real number
before the first tour.
A pre-approval is a lender's letter, usually based on verified income, assets and credit, saying how much it is generally willing to lend you. It is not a guaranteed loan offer. Get one before you tour, so you know your ceiling and a seller takes your offer seriously.
Pre-qualification versus pre-approval.
Both letters say how much a lender is generally willing to lend. Neither is a guaranteed loan offer. The Consumer Financial Protection Bureau (CFPB) notes that lenders use the two words differently: some issue a pre-qualification on information you report without checking it, and a pre-approval only after they verify it.
So the label matters less than the work behind it. Ask your lender what it has verified: income, assets, credit. In Arizona, your lender also completes the Arizona REALTORS Pre-Qualification Form, which the purchase contract requires you to attach to your offer.
Why I ask for it before we tour.
Touring before you know your number feels productive. It is not. You fall for a house you cannot write on, or you write at a number the seller was never going to take. Get a current pre-approval even if you had one last year. Rates and rules move.
Your real ceiling
The pre-approval tells us the most a lender will lend. That sets the top of the search.
A payment you can live with
The ceiling is not the target. We set an all-in monthly payment you are comfortable with. Test it with the affordability calculator and the mortgage calculator.
An offer sellers take seriously
Sellers will not take an offer seriously without one, and listing agents call the lender to confirm. See making an offer.
What lenders ask for.
The CFPB suggests gathering these before you apply. Your lender may ask for more. I can introduce you to lenders I trust. I am not paid for any introduction. You are free to use anyone, and comparing Loan Estimates from more than one lender is how you see the difference.
- Income.A pay stub from the last 30 days, W-2 forms for the last two years, signed federal tax returns for the last two years, and proof of any other income.
- Assets.Your two most recent bank statements, and documents showing where your down payment comes from.
- Gifts.If someone is giving you part of the money, a signed gift letter from the giver.
- Identity.A driver's license or other ID, your Social Security number, and proof of any recent name change.
- Service members and veterans.A Certificate of Eligibility from the VA, if you plan to use a VA-backed loan.
- Permission to pull credit.The CFPB notes that credit scoring treats several mortgage inquiries in a short window, 14 to 45 days depending on the model, as one inquiry. Shopping for a few weeks should not have much effect on your score.
Four loan types, at a high level.
Which loan fits you is a decision for you and your lender. I do not recommend one. Here is what the federal agencies say about each, in brief. Each type also carries its own appraisal and repair rules, which matter when we write an offer.
- Conventional.The CFPB describes these as the majority of loans, and says they typically cost less than FHA loans but can be harder to get. With a smaller down payment, a conventional loan may require private mortgage insurance, which protects the lender, not you.
- FHA.Insured by the Federal Housing Administration, part of HUD, and made by FHA lenders. HUD and the CFPB describe a low down payment and availability to borrowers with lower credit scores.
- VA.For veterans, service members and eligible surviving spouses, made by private lenders and backed by the VA. VA says a purchase loan may need no down payment if the price is not above the appraised value, does not require private mortgage insurance, and may carry a VA funding fee.
- USDA.Guaranteed by USDA Rural Development and made by approved lenders, for homes in eligible rural areas. Household income cannot exceed 115 percent of the area median, and the home must be your primary residence. USDA's eligibility site checks a specific address.
Credit, debt and rate locks.
Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. In the CFPB's example, $2,000 of monthly debts on $6,000 of gross monthly income is a DTI of 33 percent. Different loan products and lenders set different limits, so ask yours.
A rate lock means your interest rate will not change between the offer and closing, as long as you close within the lock period. The CFPB says locks usually run 30, 45 or 60 days, sometimes longer, and can be expensive to extend. A locked rate can still change if your application changes, such as the loan amount, your credit score or your verified income. Your Loan Estimate shows whether your rate is locked and until when.
Discount points are paid at closing for a lower rate. One point equals one percent of the loan amount. Lender credits work the other way: lower closing costs in exchange for a higher rate. I do not quote rates. Your lender does, in writing.
From application to closing.
Under the Arizona REALTORS contract, within three days after acceptance you apply for the loan: you give your lender your information and permission to pull credit. Within 10 days your lender delivers the Loan Status Update. No later than three days before closing, you sign loan documents, confirm approval, or give notice that you cannot get the loan. See the purchase contract.
Your lender rechecks your credit and employment right before closing. Until you have keys, avoid the moves that can delay or end a loan:
- Credit.Do not open new cards or loans, co-sign for anyone, or finance furniture, appliances or a car.
- Work.Do not change jobs, go self-employed, or change how you are paid.
- Money.Do not make large deposits or withdrawals you cannot document, change bank accounts, or spend your closing funds.
- Payments.Do not miss a payment on anything, and do not leave a debt off your application.
- Requests.Answer your lender's document requests the same day.
Common questions
What is the difference between pre-qualification and pre-approval?
Lenders use the terms differently. Some issue a pre-qualification on information you report and a pre-approval only after verifying it. Neither is a guaranteed loan offer, so ask what your lender has verified.
Will shopping for a mortgage hurt my credit?
The CFPB says scoring models treat several mortgage inquiries within a short window, 14 to 45 days depending on the model, as one, so a few weeks of shopping should not have much effect.
When will I get a Loan Estimate?
Within three business days after the lender receives your application.
When will I get the Closing Disclosure?
At least three business days before you close on the loan. It shows the final loan terms, payments and costs.
Can you recommend a lender?
I can introduce you to lenders I trust. I am not paid for any introduction. You are free to use anyone. Compare Loan Estimates to see the difference.
What should I avoid before closing?
New credit, co-signing, financing big purchases, changing jobs or pay, undocumented deposits, spending closing funds, and missed payments. Your lender rechecks credit and employment right before closing.
Questions about getting pre-approved?
Want a real number before you tour? Text me. I will introduce you to lenders I trust, or look over the pre-approval you already have before we write an offer. I am not paid for any introduction, and you are free to use any lender. Call or text 480-485-4261. If you already have an agent under contract, ask them first.
This page is general information, not legal or tax advice. Sources: CFPB, Prequalification and preapproval letters, Create a loan application packet, Hit or myth, Loan options, What is private mortgage insurance?, What is a debt-to-income ratio?, What is a rate lock?, Discount points and lender credits, What is a Loan Estimate? and What is a Closing Disclosure?; HUD, Let FHA Loans Help You; VA, VA Home Loans and Purchase Loan; USDA Rural Development, Guaranteed Loan Program; and the Arizona REALTORS Residential Resale Real Estate Purchase Contract (revised November 2025) from Arizona REALTORS: the revision notice and the published form, with K. Michelle Lind, Esq., Part 3(a), The Financing Section. All checked 28 October 2026.