Module 05
How to Get Pre-Approved
Why pre-approval matters, what documents you need, and how to get it done in a few days.
If you are serious about buying a home in Clinton County, getting pre-approved for a mortgage should be one of your first steps. Pre-approval tells sellers you are a qualified buyer, locks in your budget, and gives you a real advantage in a competitive market. Here is exactly how the process works and what you need to prepare.
What Is Pre-Approval?
Pre-approval is a written commitment from a lender stating that you qualify for a mortgage up to a specific amount. Unlike pre-qualification (which is a quick estimate based on self-reported information), pre-approval involves a thorough review of your income, assets, credit score, and employment history. It is the gold standard for showing sellers you are a serious buyer.
In the Wilmington market, where well-priced homes go under contract in approximately 45 days, having a pre-approval letter in hand means you can move quickly when you find the right property. Sellers and their agents take pre-approved buyers more seriously — and in multiple-offer situations, pre-approval can be the difference between winning and losing the home.
What You Will Need
To get pre-approved, gather the following documents before you call a lender:
Pre-Approval Document Checklist
- Pay stubs — last 30 days (or two years of tax returns if self-employed)
- W-2s and tax returns — last two years
- Bank statements — last two to three months (all pages)
- Government-issued ID — driver's license or passport
- Proof of additional assets — retirement accounts, investments, gift letters
- Employment verification — recent pay stub or employer contact information
What Lenders Look For
Lenders evaluate four main factors when deciding whether to approve your loan:
- Credit score: 640+ for most loan programs, 660+ for FHA through OHFA. Higher scores qualify for better rates.
- Debt-to-income ratio (DTI): Your monthly debt payments (including the new mortgage) divided by your gross monthly income. Most lenders prefer a DTI of 43% or lower.
- Down payment funds: The money you have available for the down payment and closing costs, including any gift funds or assistance programs.
- Employment history: Two or more years of stable employment in the same field is ideal. Recent job changes are usually fine if they are in the same industry.
How Long Does Pre-Approval Take?
Once you submit your documents, most lenders can issue a pre-approval decision within one to three business days. Some online lenders can do it in as little as 24 hours. The key is having all your documents organized and ready before you start the process.
Pre-approval is typically valid for 60 to 90 days. If you do not find a home within that window, you may need to update your documents and reapply.
Pre-Approval vs. Pre-Qualification
It is important to know the difference. Pre-qualification is a quick estimate based on information you provide verbally or in a short online form. It gives you a ballpark number, but it is not a commitment. Pre-approval involves verifying your income, assets, and credit — the lender pulls your credit report and reviews your actual financial documents.
For first-time buyers in Clinton County, we recommend getting fully pre-approved before you start touring homes. It costs nothing, there is no obligation, and it puts you in the strongest possible position when you find the right home.
Action item
Gather your documents and call a lender this week. We can recommend trusted local lenders who know the Clinton County market and can help you navigate OHFA programs.
Ready to get pre-approved?
We work with experienced local lenders who specialize in first-time buyer programs. Let us make the introduction.