Buying a home is one of the most important financial decisions you'll ever make. Whether you're a first-time buyer or returning to the market, the mortgage process can seem complex and overwhelming. One of the most crucial early steps is getting pre-approved. Pre-approval not only clarifies how much you can afford but also positions you as a serious buyer in the eyes of sellers and real estate agents. In this guide, we’ll walk you through everything you need to know about mortgage pre-approval—what it is, why it matters, and how to prepare for it.

What Is Mortgage Pre-Approval?

Mortgage pre-approval is a lender’s conditional agreement to loan you a specific amount of money for a home purchase, based on your financial situation. It’s different from pre-qualification, which is a quick estimate of what you might afford. Pre-approval is more formal and involves a detailed review of your credit history, income, and debt obligations.

Key Benefits of Pre-Approval:

• Know your price range before shopping for a home

• Stand out to sellers in competitive markets

• Avoid surprises later in the underwriting process

• Speed up the final loan approval

Pre-Approval vs. Pre-Qualification: What’s the Difference?

Pre-Qualification:

• Quick estimate

• Based on self-reported info

• No credit check

• Non-binding

Pre-Approval:

• Requires documentation

• Includes credit check

• Based on verified income/debt

• Stronger commitment from lender

While pre-qualification is helpful early on, pre-approval gives you the green light to shop with confidence.

What Lenders Look for During Pre-Approval

To determine how much they can lend you, lenders evaluate several factors:

1. Credit Score

Your credit score is a key indicator of your financial responsibility. Higher scores usually qualify you for better interest rates. Most lenders require a minimum score of 620, but a score of 740+ can offer access to the best terms.

2. Income and Employment

Lenders need to verify that you have a stable source of income. They’ll ask for:

• Pay stubs

• Tax returns (2 years)

• W-2s

• Employment verification

Self-employed borrowers may need to provide business tax returns and profit/loss statements.

3. Debt-to-Income Ratio (DTI)

This compares your monthly debt payments to your gross monthly income. Most lenders prefer a DTI ratio below 43%, though some may approve higher ratios depending on the loan type.

4. Assets and Down Payment

You’ll need to show proof of funds for your down payment and closing costs. This includes bank statements, retirement accounts, or gift letters (if someone is helping you with the funds).

What Documents You’ll Need

Here’s a checklist of commonly required documents for mortgage pre-approval:

• Government-issued ID

• Social Security Number

• Proof of income (pay stubs, tax returns)

• W-2s or 1099s

• Asset statements (bank accounts, retirement funds)

• List of monthly debts (loans, credit cards, etc.)

• Contact info for your employer

• Written explanation for any large deposits or credit issues

Pro tip: Having these documents ready speeds up the process significantly.

How Long Does Pre-Approval Take?

The pre-approval process can take anywhere from 24 hours to a few days, depending on how quickly you submit documents and how complex your finances are. At Security National Mortgage Company, we offer a streamlined pre-approval process designed to get you answers fast—often within one business day.

How Long Is a Pre-Approval Valid?

A pre-approval letter is typically valid for 60 to 90 days. If you haven’t found a home in that timeframe, your lender may need to update your financial information and issue a new letter.

Common Pre-Approval Mistakes to Avoid

1. Making large purchases (like a new car) before closing

2. Changing jobs during the loan process

3. Opening new credit accounts

4. Not checking your credit report in advance

5. Failing to disclose debts or financial changes

Any of these could affect your creditworthiness or DTI, putting your loan approval at risk—even after pre-approval.

What Happens After You’re Pre-Approved?

Once you’re pre-approved, you’ll receive a letter from your lender. This letter shows:

• The loan amount you qualify for

• Loan type (conventional, FHA, VA, etc.)

• Interest rate (may be estimated)

• Conditions or contingencies

Use this letter when making offers on homes. It tells sellers you're a serious buyer backed by a reputable lender.

How Security National Mortgage Company Can Help

At SNMC, we believe the mortgage process should be transparent, empowering, and tailored to you. Our team is here to:

• Help you understand your loan options

• Guide you through the pre-approval process step-by-step

• Offer fast, accurate pre-approvals

• Answer any questions along the way

Whether you’re buying your first home or exploring refinancing, we’re here to support your journey.

Final Thoughts

Getting pre-approved is one of the smartest moves you can make at the start of your homebuying journey. It saves time, gives you clarity, and puts you in a stronger position to make an offer. With the right lender, it can also be fast, simple, and stress-free.

At Security National Mortgage Company, we’re ready to help you take that first step. Let’s find out what’s possible—together.