What should I do before getting pre-approved for a mortgage?

Pre-approval involves a lender reviewing your financial documentation, so being organized before you start can help things move more efficiently. Here's what to think through beforehand:

Review your income picture

Lenders verify income, so think about how you're paid, whether you're a W-2 employee or self-employed, and whether your income has been consistent. Lenders typically review at least two years of history.

Understand your monthly obligations

Recurring debts such as car payments, student loans, and credit card minimums factor into the debt-to-income ratio lenders evaluate. Knowing what you carry monthly gives you a clearer picture of what a lender will see.

Think through a comfortable monthly payment

There's a difference between what a lender may approve and what you're actually comfortable spending each month. Thinking through your housing budget beforehand, factoring in a mortgage payment, taxes, insurance, and other ownership costs, helps you evaluate any pre-approval amount in a real context.

Gather commonly requested documents

Lenders typically ask for recent pay stubs (usually 30 days), W-2s or tax returns (usually two years), bank statements (usually two to three months), and a photo ID. They'll also need authorization to pull your credit report. Having these ready reduces back-and-forth once the process starts.

Avoid major financial changes before applying

Large purchases, new debt, job changes, or significant account activity can affect what a lender sees. It's generally wise to hold off on these until after closing.

Prepare questions for the lender

Shopping more than one lender and comparing rates, fees, and loan products is worthwhile. Knowing what you want to compare before you start makes those conversations more useful.