Tips to Get Pre-Approved
Whether it’s your first time buying or you’ve bought a home before, the mortgage process can feel a little overwhelming. One of the smartest first steps is getting pre-approved for a home loan. Before you fall in love with an Ernest Homes floor plan or a specific community, knowing your numbers will help you shop with confidence.
The Difference Between Pre-Qualification & Pre-Approval
A mortgage pre-qualification is a useful estimate of how much you might be able to borrow based on basic information you provide to a lender. However, a pre-approval is much more powerful.
With a pre-approval, your lender reviews your credit, verifies your income and assets, and conditionally approves you for a specific loan amount. This approval is usually good for a set period of time (often 60–90 days), giving you a clear budget while you shop for a home.
By consulting with a lender and obtaining a mortgage pre-approval letter, you can:
- Discuss your budget and loan options with a professional.
- Identify and address any issues on your credit report early.
- Understand your maximum purchase price before you start home shopping.
- Avoid wasting time looking at homes that are outside your price range.
Before You Start the Pre-Approval Process
Before you begin the mortgage pre-approval process, it helps to do a little homework on your finances.
- Check your credit. Order a free credit report and review your credit history. If you see anything inaccurate, contact the credit bureau right away to have it corrected.
- Stabilize your finances. Try to avoid major purchases, new credit cards, or job changes while you’re preparing to apply. Lenders like to see steady income and responsible credit use.
- Save for your down payment and closing costs. Knowing how much cash you’ll need upfront will help you choose the loan program that fits you best.
If you skip these steps, your mortgage application could be delayed or even rejected, so it’s worth taking the time to prepare.
Documents You’ll Need for Mortgage Pre-Approval
Every lender is a little different, but most will ask for similar documentation so they can verify your income, assets, and identity. Be ready to provide:
- Recent pay stubs that show your year-to-date income
- Two years of federal tax returns
- Two years of W-2 forms (and 1099s, if applicable)
- Statements for checking, savings, CDs, retirement accounts, stocks, and bonds
- Records for any other real estate you own
- Your residential history for the past two years
- Your landlord’s contact information, if you currently rent
Having these documents organized early will make the pre-approval process smoother and faster.
The Benefits of Being Pre-Approved
- Know exactly where you stand. Your pre-approval tells you how much the lender is willing to let you borrow. That number helps you focus on homes that truly fit your budget instead of guessing what you can afford.
- Streamline the formal loan process. Once you’ve found your new home, much of the paperwork is already complete. That can make the final loan approval and closing process faster and less stressful.
- Accurately anticipate monthly costs. Going through pre-approval helps you estimate your monthly payment, including principal, interest, taxes, and insurance. You’ll also have a clearer idea of how much you’ll need for your down payment and closing costs.
- Potentially lock in a favorable rate. Many pre-approvals come with an interest-rate lock that is good for a set period (often three to four months). If rates are expected to rise, locking in early can help protect your budget.
Start Your New Home Search with Confidence
When you’re searching for the perfect new home, taking the time to get pre-approved is worth the effort. While it doesn’t guarantee final loan approval, it gives you a strong, realistic estimate of what you qualify for before you start making offers.
After this initial step, the homebuying process tends to flow more easily. Our team at Ernest Homes is here to guide you through the rest—from choosing the right floor plan to selecting a community and personalizing your new home.
Explore our communities near Savannah and Coastal Georgia and browse our available homes. When you’re ready to take the next step, contact us and we’ll be happy to help you move forward with confidence.
