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Buying my first home

Can I actually afford this, and what happens next?

Step 2 of 7

How much can I borrow, and what is pre-approval?

The answer

Pre-qualification is a lender's guess based on what you tell them. Pre-approval is the lender checking your documents and putting in writing how much they'd lend you. Sellers take the second one seriously, and it's what turns "looking" into "ready." It isn't a commitment to borrow. It's knowledge, and it's free.

It's paperwork, but straightforward: pay stubs, tax returns, bank statements, then a conversation. Most pre-approvals come back within a few days.

How long
Most people spend about 5 days here.
What to do0 of 5 done
  • How to: Compared offers from at least two lenders

    Talk to two or three lenders and compare the full offer, not just the rate

  • How to: Submitted my documents and authorized the credit check

    Submit your documents and authorize the credit check

  • How to: Read my loan estimate and asked my questions

    Read the loan estimate and ask about anything you don't understand

  • How to: Have my pre-approval letter

    Get the pre-approval letter you'll attach to an offer

  • How to: Know how long my pre-approval lasts

    Tell your lender right away if anything about your finances changes

Go deeper
What people wish they'd known
  • Treating pre-approval like a loan. It's a commitment to lend, not a loan, and it expires, usually in 60–90 days.
  • Comparing lenders on rate alone. Fees, points and responsiveness change the real cost more than a tenth of a percent.
  • Shading the truth on the application. Underwriting checks everything later, and surprises then are far worse than honesty now.

From the Thrive team

  • Get pre-approved before you start looking in earnest. It keeps the search inside a real price range and lets you move fast when the right home appears.
The next thing people ask

What should I look for, and what's a red flag?

Go to step 3

Questions you'll probably have

Questions about your situation?

Elliott or Ashley will answer, usually within one business day. No pressure, no pitch.

Who would you like to ask?

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