For buyers
Steps to Pre-Approval
Pre-approval is the first real step in buying — most sellers in Michigan will not look at an offer without it. Here is exactly what happens, in order, and what to have ready.
Written by ShaNayta (Shay) McClain, Real Estate Agent with eXp Realty, based in Waterford, Michigan. Call or text (248) 270-8529.
- 1
Pull your own credit first
You can request one free report a week from each of the three bureaus at AnnualCreditReport.com — the only site federally authorized for free reports. Read it for accounts that are not yours, balances already paid, or old collections. Fixing an error before a lender pulls your file is far easier than explaining it later.
- 2
Add up what you owe every month
Car payments, student loans, credit card minimums, child support. Lenders compare those plus your future house payment to your gross monthly income. That ratio drives what they will lend you more than almost anything else.
- 3
Gather your paperwork
Most lenders ask for the same core set, listed below. Having it in one folder turns a two-week back-and-forth into a couple of days.
- 4
Talk to at least two lenders
The Consumer Financial Protection Bureau notes that comparing offers can save you real money over the life of the loan. Applications with several lenders inside a short shopping window are generally treated as one inquiry by credit scoring models, so shopping does not stack up damage to your score.
- 5
Complete the application
The lender verifies your income, assets, employment, and credit. This is a full review — not the instant number a website gives you.
- 6
Get the pre-approval letter
It states a maximum loan amount and has an expiration date, usually 60 to 90 days. Sellers here expect to see one attached to your offer.
- 7
Then change nothing
Until you have the keys: no new credit cards or car loans, no job changes if you can help it, no large unexplained deposits, and keep paying everything on time. Your loan is re-verified right before closing.
What to have in your folder
- Photo ID and Social Security number
- Pay stubs covering the last 30 days
- W-2s and tax returns for the last two years
- Two months of statements for every bank and investment account
- Proof of any other income you want counted — bonus, self-employment, retirement, child support
- If self-employed: two years of returns plus a year-to-date profit and loss
- A gift letter if part of your down payment is coming from family
Three terms people mix up
- Pre-qualification
- A quick estimate based on numbers you tell the lender. Nothing is verified. It carries little weight with a seller.
- Pre-approval
- The lender has reviewed and verified your documents and credit, and issues a letter with a specific amount. This is what you want before you tour homes.
- Loan Estimate
- A standardized federal form your lender must give you within three business days of a completed application, showing the rate, monthly payment, and closing costs. Use it to compare lenders side by side.
How long does it take?
Once the lender has everything on the list above, a pre-approval letter often comes back within a few business days. The waiting is almost always on documents, not on the lender. If you are not sure who to call, reach out and I will point you to lenders who work in Oakland County every week.
Please read
This page explains a general process and is not lending advice, a credit decision, or an offer of credit. Requirements, timelines, and documents vary by lender, loan program, and your situation. Only a licensed lender can review your file and issue a pre-approval. I am a real estate agent, not a mortgage lender.
Questions? Let's talk it through.
Whatever these tools show you, call or text me and I'll walk you through your options personally — the real tax bill, a lender introduction, and what similar homes are selling for. No pressure, and no question is too small.