What You Need to Know Before Getting Pre-Approved for a Mortgage
If you're planning to buy a home soon, getting pre-approved for a mortgage is one of the smartest first steps you can take. It gives you a clear picture of your buying power and helps real estate agents and sellers take you seriously.
But before you start filling out a mortgage pre-approval application, it’s important to understand what lenders look for—and how to set yourself up for success. Here’s what you need to know.
1. Know Your Credit Score (and What Affects It)
Your credit score is one of the most influential factors in determining your mortgage eligibility, interest rate, and loan options. Most lenders prefer a score of 620 or higher, but some loan programs (like FHA) may accept lower scores.
Tips to boost your score before applying:
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Pay down credit card balances
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Avoid opening new accounts
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Dispute errors on your credit report
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Make all payments on time
👉 Pro Tip: EVO Mortgage works with a wide range of lender partners, so we can help match you to a loan program that fits your credit profile.
2. Gather Your Financial Documents
To get pre-approved, you’ll need to provide documentation that proves your income, employment, and assets. Be prepared to share:
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W-2s and/or 1099s from the last two years
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Recent pay stubs
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Bank statements
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Tax returns
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Proof of any additional income (child support, bonuses, side gigs)
If you’re self-employed, lenders will typically ask for two years of business tax returns and possibly a year-to-date profit & loss statement.
3. Understand Debt-to-Income Ratio (DTI)
Your DTI compares your monthly debt payments to your gross monthly income. Most lenders prefer a DTI below 43%, but lower is better.
Calculate yours by:
Total monthly debt ÷ Gross monthly income = DTI %
Reducing your monthly obligations—like paying off a car loan or credit card—can improve your pre-approval odds.
4. Decide on a Down Payment Strategy
While 20% is the traditional benchmark for avoiding private mortgage insurance (PMI), you may not need that much.
Typical options include:
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Conventional loans: As low as 3% down
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FHA loans: Minimum 3.5% down
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VA and USDA loans: 0% down (if eligible)
EVO Mortgage offers access to low down payment programs and first-time buyer assistance—just ask!
5. Avoid Major Financial Changes
Once you begin the pre-approval process, it’s important to keep your finances stable. Avoid:
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Switching jobs
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Making large deposits or withdrawals
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Financing big purchases (cars, furniture, etc.)
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Opening new credit lines
Even small changes can impact your loan approval or delay the closing process.
6. Understand What Pre-Approval Is (and Isn't)
A pre-approval letter shows that a lender has reviewed your financial information and is tentatively willing to lend you a certain amount.
However, it’s not a final loan commitment. That only happens after a full underwriting review once you go under contract on a home.
Still, a pre-approval:
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Gives you a clear homebuying budget
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Makes your offer more competitive
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Speeds up the closing process
7. Work With a Mortgage Partner Who Prioritizes You
At EVO Mortgage, we’re committed to clear communication, fast pre-approvals, and mortgage solutions that match your life. Whether you’re a first-time buyer or upgrading to your dream home, our team is here to guide you through every step of the mortgage journey.
How EVO Mortgage Helps You
At EVO Mortgage, our goal is to make your homebuying journey less stressful and more successful. Here’s how we support first-time buyers every step of the way.