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Get pre-approved before you tour

The short answer

A pre-approval is a lender's written estimate of how much it will lend you, after it has checked your credit, income and savings. It tells you your real budget and shows sellers your offer is serious. Get one before you start touring, and compare more than one lender: rates and fees differ more than most buyers expect.

scheduleUsually a few daysrequest_quoteCompare Loan Estimates side by sidepercentOne point costs 1% of the loan
By David Knorr · Last reviewed October 28, 2026

Pre-approval or pre-qualification?

A pre-qualification is based on what you tell the lender. A pre-approval is checked against your documents and your credit report. Sellers take a pre-approval much more seriously, so that's the one to get.

What you'll need

  • Recent pay stubs, and W-2s or tax returns for about two years.
  • Bank and investment statements for the last few months.
  • A photo ID, and permission for the lender to check your credit.
  • A gift letter, if family is helping with the down payment.

Compare lenders on the Loan Estimate

Within three business days of your application, every lender must give you a Loan Estimate: the same standard three-page form, whichever lender you use. Because the form is the same, comparing is simple. Line them up and look at:

  • The interest rate and the APR.
  • Any points included in the rate.
  • The lender's own fees, in section A.
  • The estimated cash to close.

Get your estimates on the same day if you can: rates change daily. Several mortgage credit checks within a short window are usually treated as one for your credit score, so shopping around shouldn't hurt it.

Ask about down payment help

State down payment help comes through lenders that take part in the program, and not every lender does. Ask before you choose one. See which federal and state programs may fit first.

Points: do the math first

One point costs 1% of the loan and lowers your rate a little. It only pays off if you keep the loan long enough.

calculateOn a $300,000 loan, one point costs $3,000. If it lowers your payment by $60 a month, it takes 50 months, just over four years, to earn that back. Sell or refinance sooner and you've lost money.

Dos and don'ts

check_circleDo

  • checkGet pre-approved before you start touring.
  • checkCompare at least two or three Loan Estimates.
  • checkAsk the lender to explain every fee you don't understand.
  • checkWork out the break-even before you pay for points.

cancelDon't

  • closeChange jobs, open credit or make big purchases before closing.
  • closeAssume your own bank is the cheapest.
  • closeBuy points because they were offered.
  • closePick a lender on the rate alone without checking the fees.

Questions to ask

Your lender

  1. What are the rate and APR, and are points included?
  2. Do you take part in our state's down payment help programs?
  3. Which of your fees can you lower or waive?
  4. How long is the rate lock, and what happens if closing is delayed?
  5. What will my full monthly payment be, with taxes and insurance?

Terms on this page

Pre-approvalLoan EstimateAPRDiscount points

infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.

Sources
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