If you’re planning to buy a home in Denver or anywhere along the Front Range, getting a mortgage pre-approval is the single best first step you can take. It tells you exactly what you can afford and shows sellers you’re a serious buyer. Here’s how the process works, step by step.
What is a mortgage pre-approval?
A mortgage pre-approval is a lender’s conditional commitment to lend you a specific amount, based on a verified review of your credit, income, assets, and debts. It’s different from a pre-qualification, which is a quick estimate based on information you provide without verification.
Why does pre-approval matter when buying a home?
- You’ll know your real budget, including an estimated monthly payment, before you start touring homes.
- Your offers will be stronger. Listing agents often expect a pre-approval letter with every offer.
- Problems surface early. Credit or documentation issues can be solved now instead of during escrow.
Step 1: Talk through your goals
Start with a quick conversation about your price range, down payment, timeline, and the type of home you’re looking for. This helps narrow down which loan programs make sense, such as conventional, FHA, VA, or jumbo.
Step 2: Complete your application
You can apply online through a secure application in a few minutes, or over the phone. You’ll share basic information about your employment, income, assets, and the type of loan you’re interested in.
Step 3: Provide your documents
Most buyers will need recent pay stubs, W-2s, bank statements, and a photo ID. Self-employed buyers usually need tax returns as well. See my complete mortgage document checklist for details.
Step 4: Credit and file review
Your loan officer reviews your credit report, verifies your income and assets, and calculates your debt-to-income ratio. If anything needs attention, this is the time to address it.
Step 5: Get your pre-approval letter
Once everything checks out, you’ll receive a pre-approval letter you can share with your real estate agent and include with offers. A good loan officer will also walk you through your estimated payment and cash to close at different price points.
Does getting pre-approved hurt your credit?
A pre-approval includes a credit check, which may cause a small, temporary dip in your score. Credit scoring models generally treat multiple mortgage inquiries made within a short shopping window as a single inquiry, so you can compare lenders without repeated damage.
How long does a pre-approval last?
Most pre-approvals are valid for about 60 to 90 days. If your home search takes longer, your loan officer can update your documents and credit to refresh it.
How to protect your pre-approval while you shop
- Don’t open new credit cards or take out new loans.
- Keep paying every bill on time.
- Avoid large deposits you can’t document.
- Talk to your loan officer before changing jobs or making large purchases.
Ready to get started? Apply online, call me at 614-348-0916, or send me a message. I’m happy to answer questions, no obligation.
Jack Pardi is a mortgage loan officer with DNVR Lending in Denver, Colorado, helping first-time buyers, move-up buyers, and investors find the right home loan. More about Jack · Get in touch
Jack Pardi is a mortgage loan officer with DNVR Lending in Denver, Colorado. NMLS #2408286. DNVR Lending, LLC NMLS #2403751. This article is for general information only and is not a commitment to lend. Not all borrowers will qualify; programs and guidelines are subject to change.