Mortgage preapproval checklist
Know what a lender reviews, prepare your documents, and choose a payment you are comfortable with before you shop for a home.
Start with your own budget
A preapproval letter shows an amount a lender is tentatively willing to lend. It is not a promise to lend or a target you must spend. Set your own monthly budget first. Include property taxes, homeowners insurance, any HOA dues, utilities, maintenance, and savings for repairs.
Use the monthly payment calculator to test a price and down payment. Use the cash-to-close tool to plan funds due at settlement. These are planning estimates, not an approval or a loan quote.
Four numbers to bring to the conversation
- Your comfortable total monthly housing payment.
- Cash available for down payment and closing costs.
- Cash you want to keep after closing.
- Your expected purchase price and timing.
Gather the basics
The lender will tell you which records fit your situation. Keep financial documents in a secure application, not in regular email.
Income
Recent pay statements, W-2s, and tax returns if requested. Self-employed buyers often need different records and a closer review of business income.
Assets and debts
Recent bank statements for funds you plan to use, plus a list of current mortgage, car, student, and other debt payments. Tell the loan officer about any gift funds before moving money.
Property plans
Your price range, intended use of the home, down payment plan, and purchase timeline. An address becomes relevant once you choose a home.
Ask what the letter covers
Lenders use “prequalification” and “preapproval” differently. Ask which income, asset, and credit records they reviewed. Ask when the letter expires and what still needs verification. Final approval depends on underwriting, the property, and current loan terms.
A lender often checks credit before issuing a preapproval. Avoid assuming a letter locks a rate. Ask whether a rate is locked, for how long, and at what cost.
Questions worth asking
- What monthly payment and cash to close do these figures assume?
- Which documents or conditions remain?
- Does the letter need an update for a different price or property?
- What changes if taxes, insurance, or HOA dues are higher?
After you find a home
Give the lender the property details and request a Loan Estimate. For most covered mortgages, the lender must provide one within three business days after receiving six items: your name, income, Social Security number, property address, estimated property value, and desired loan amount. You do not need to submit a signed purchase contract or verification documents as a condition of receiving the Loan Estimate. Sharing accurate details helps produce a useful estimate.
Compare the interest rate, APR, monthly payment, closing costs, cash to close, and whether the rate is locked. Ask about any fee or term you do not understand. Continue through the loan process after you choose an offer.
Source: CFPB guide to preapproval ↗ and CFPB Loan Estimate information ↗. Program terms and document requests vary by lender and borrower.
Discuss your homebuying plan