How to Get Qualified for a Home Loan

If you want to buy a home, the first step is knowing how much money you can borrow. How to get qualified for a home loan starts with a pre-qualification or pre-approval letter! Going throught the process of getting one of these letters helps you understand your budget and show sellers that you’re serious about buying. But what’s the difference, and how do you do it? Let’s break it down.

What’s the Difference?

• Pre-Qualification: is a quick process where a lender looks at your income and debts to give you an estimate of how much you might be able to borrow.
• Pre-Approval: is more official. The lender checks your credit, reviews your financial documents, and gives you a letter stating exactly how much they are willing to lend you.

How to Get Pre-Qualified or Pre-Approved

1. Check Your Credit Score

Before talking to a lender, check your credit score. A higher score can help you get better loan options and lower interest rates.

2. Gather Your Documents

Lenders will need to see proof of your income and financial history. Be ready to provide:

• Pay stubs
• Bank statements
• Tax returns
• Employment information

3. Choose a Lender

Next, find a lender you trust. You can go to a bank, credit union, or mortgage company. If you’re unsure where to start, ask your real estate agent for recommendations.

4. Apply for Pre-Qualification or Pre-Approval

Fill out an application with your lender. If you’re getting pre-approved, they will run a credit check and review your documents. This process may take a few days.

5. Get Your Pre-Qualification or Pre-Approval Letter

If you get pre-approved, your lender will give you a letter stating how much money you can borrow. This letter is important because it shows sellers that you are financially ready to buy a home.

Why It’s Important

Getting pre-qualified or pre-approved helps you:
✅ Know how much you can afford
✅ Show sellers you are a serious buyer
✅ Speed up the home-buying process

If you Want to Look Serious, Do It!

If you’re thinking about buying a home, getting pre-qualified or pre-approved is the best place to start. It will help you set a budget and make the process easier. Need help finding a great lender?

Now that you know all about the second step in the home buying process, let’s move on to #3! To see the whole 10 step process check out our blog article: The 10 Steps to Buying a Home.

If you enjoyed How to Get Qualified for a Home Loan, make sure to check out ERA Liberty’s other blog articles. We blog about all things real estate, local eats, and happenings in and around our community.

For all your home buying or selling needs, ERA Liberty Realty is always there for you! We are here to help you no matter where you are, we have agents licensed in West Virginia, Virginia, Maryland, or Washington DC! Reach out today to get your real estate journey started!