Mortgage Approval Process

Whether you're a first-time buyer or someone who's bought and sold a few homes already, getting pre-approved for a mortgage can feel confusing or even a little intimidating. But it really doesn’t have to be. We’re here to walk you through what pre-approval is, what lenders (including us!) are looking for, and how it helps you get one step closer to homeownership with confidence.

What Does Mortgage Pre-Approval Actually Mean?

When you get pre-approved, lenders take a look at your financial information to give you a better idea of how much you may be able to borrow. This gives you a clearer picture of your budget and shows sellers you're a serious buyer.

We look at things like your debt-to-income ratio (DTI), which is just a way of comparing how much debt you have to how much income you make. A lower DTI tells us you’re in a good spot to handle monthly mortgage payments. We also consider your loan-to-value ratio (LTV), which is how much you’re looking to borrow compared to the value of the home. This can affect your down payment and whether or not mortgage insurance is needed.

Your credit score and history matter too. These help us understand how you’ve handled debt in the past. And the type of property you’re buying plays a role as well. Different property types (like condos or multi-family homes) come with different guidelines, so that can affect what loan programs are available to you.

Why Getting Pre-Approved Early Matters

Getting pre-approved before you start seriously house hunting is a smart move. You’ll get an estimate of your loan amount, how much of a down payment you’ll need, and what your monthly payment could look like. That means you can search with a real budget in mind.

Pre-approval also shows sellers and agents that you’re ready to go, which can make your offer more attractive in a competitive market. It’s one of the easiest ways to give yourself a leg up.

Pre-Approval vs. Full Mortgage Approval

Here’s something a lot of buyers don’t always realize: pre-approval and full mortgage approval are not the same thing. A pre-approval is based on the information you provide at the beginning, like your income, assets, and credit. We haven’t fully verified everything yet, but it gives you a solid estimate of how much you can borrow and helps you shop with confidence.

Full mortgage approval comes later in the process. That’s when we’ve reviewed all of your documents, verified your financials, and completed the property appraisal. Once that’s done, your loan is officially approved and ready to move forward.

There’s also a helpful option in between, and that’s something we offer called DU (Desktop Underwriter) approval. It’s an automated underwriting system that lets us review your file more thoroughly up front. This gives you a stronger position when making an offer, because it shows sellers your information has already gone through a deeper level of review. In competitive markets, that can make a big difference.

Want to learn more about how DU approval works and why it helps? Check out our blog post on DU approvals.

What to Look For in a Pre-Approval Letter

Your pre-approval letter is more than just a number. It’s a tool that helps guide your home search and gives sellers confidence in your offer. Here's what you’ll typically see included:

Loan Amount: This shows how much you're pre-approved to borrow. For government-backed loans like FHA, VA, or USDA, this may include both the base and gross loan amount.
Mortgage Type: This tells you what kind of loan you’re pre-approved for, such as FHA, VA, USDA, conventional, or jumbo.
Term: This refers to how long you’ll be repaying the loan—like 30-year fixed, 15-year fixed, or an adjustable-rate mortgage (ARM).
Occupancy: The letter should specify whether the home will be your primary residence, a second home, or an investment property.
Status and Expiration Date: Most letters are valid for about 90 days. This is based on the date your credit report was pulled.
Conditions: These are any outstanding items needed to finalize your approval, such as updated pay stubs or bank statements.
Lender Info: Our contact details will be clearly listed so your agent or the seller’s agent can easily get in touch if needed.

Even with all this info in hand, it's still important to talk through what’s truly comfortable for your budget. Just because you’re pre-approved for a certain amount doesn’t mean you need to spend it all. We’re here to help you make the right decision for your lifestyle and future plans.

Let’s Make This Part Easy

Ready to get started? Give us a call at (813) 343-4775 or schedule a free consultation and we’ll call you!

We know the mortgage process can feel complicated at first, but you don’t have to figure it all out on your own. Our team is here to help you understand your options, find the right loan program, and feel confident every step of the way.