A pre-approval is a lender's written statement that, based on the documents you have provided and a review of your credit, you qualify for a loan up to a certain amount. It is not a final loan approval, but it is the closest thing to one you can have before you find a home, and it is very different from a quick online pre-qualification, which usually relies on numbers you type in without anything being checked.
Getting pre-approved first does two things. It tells you what you can comfortably afford, so you spend your time on homes that fit, and it tells sellers that your offer is backed by a lender who has already reviewed your file. When a seller is weighing more than one offer, a solid pre-approval letter can matter as much as the price.
Lenders usually ask for recent pay stubs, two years of W-2s or tax returns, recent bank statements, and a photo ID, along with permission to pull your credit. If you are self-employed, expect to provide business tax returns and possibly a year-to-date profit and loss statement. If you are buying with an ITIN, work with a lender that offers ITIN loan programs; we cover that in a separate guide.
A pre-approval letter normally shows a maximum loan amount, the loan type, and an expiration date, often 60 to 90 days out. Your lender can update it as you go. The maximum is a ceiling, not a target: your agent and your lender can help you choose a price range that leaves room for closing costs, taxes, insurance, and life after you move in.
Compare at least two or three lenders. Rates, lender fees, and loan programs can differ, and every lender must give you a Loan Estimate after you apply, a standard form that makes side-by-side comparison much easier. Shopping several lenders within a short window generally counts as a single credit inquiry for scoring purposes.
Until you close, try to keep your finances steady: avoid opening new credit cards, financing a car or furniture, changing jobs, or moving large sums without telling your lender. Lenders often re-check credit and employment right before closing, and surprises at that point can delay or derail a purchase. Your EMR agent can introduce you to local lenders who work with buyers across the RGV, in English or Spanish.