Step 1 — Do This First

Mortgage Pre-Approval
for First-Time Buyers

Pre-approval is the single most important step before you tour any home. FSBO sellers won't take you seriously without it — and neither should you.

Step 1 — Do This First

Get Mortgage Pre-Approval Today

FSBO sellers take pre-approved buyers seriously. LendingTree lets you compare rates from 200+ lenders in minutes — for free.

$1–$70/lead commission earned No credit score impact 3-minute process
Compare Mortgage Rates Free →

Affiliate link — we earn a commission at no cost to you. Disclosure

Why Get Pre-Approved Before You Shop

  • Tells you exactly what you can afford so you don't waste time on homes outside your budget.
  • FSBO sellers are often wary of unrepresented buyers — a pre-approval letter signals you're serious and qualified.
  • Reveals any credit issues early so you can fix them before you find your dream home.
  • Speeds up the process once you're under contract — lenders can close faster if underwriting is already underway.
  • Lets you compare actual rates, not just advertised rates, from multiple lenders.

How to Get Pre-Approved: 6 Steps

1
Check your credit score

You need a minimum 580 for FHA loans (3.5% down) or 620 for conventional loans. Check your score free at annualcreditreport.com.

2
Calculate your DTI ratio

Lenders want your total monthly debt (car, student loans, credit cards + new mortgage) to be under 43–50% of gross monthly income.

3
Gather your documents

Last 2 years W-2s/tax returns, last 2 months pay stubs, 2 months bank statements, and ID. Self-employed buyers need 2 years of business tax returns.

4
Compare lenders

Get quotes from at least 3 lenders. Multiple mortgage inquiries within a 45-day window count as a single credit pull.

5
Submit your application

Apply online with your chosen lender. They'll run a hard credit pull and review your documents.

6
Receive your pre-approval letter

The letter shows the maximum loan amount. Use this when making offers on FSBO properties.

High Value — $240/funded loan

Credible

Personalized mortgage rates in 3 minutes

Compare Rates

See real rates from multiple lenders with one soft credit pull. Credible pays up to $240 per funded loan — which means they have every reason to find you the best rate.

Compare Mortgage Rates

Loan Types for First-Time Buyers

FHA Loan
Credit score 580–679
Min. down: 3.5%
Min. credit: 580

Best for buyers with lower credit scores. Requires mortgage insurance (MIP) for the life of the loan with low down payments. Backed by the Federal Housing Administration.

Conventional Loan
Credit score 680+
Min. down: 3%
Min. credit: 620

No government backing. PMI required if down payment is under 20%, but PMI can be removed once you reach 20% equity. Lower long-term cost than FHA if your score is strong.

USDA Loan
Rural/suburban buyers
Min. down: 0%
Min. credit: 640

Zero down payment for homes in eligible rural and suburban areas. Income limits apply. Geographic eligibility at eligibility.sc.egov.usda.gov.

VA Loan
Military/veterans
Min. down: 0%
Min. credit: 620

Exclusively for veterans, active military, and surviving spouses. No PMI, no down payment, competitive rates. Best mortgage product available if you qualify.

Rocket Money

Track spending & build your down payment faster

Start Budgeting Free

Documents You'll Need

Income

Last 2 years W-2s or 1099s, last 2 pay stubs (or 2 years tax returns if self-employed)

Assets

Last 2 months bank/investment statements — all pages, even blank ones

Debts

Student loan, car loan, and credit card statements (lenders pull these anyway)

ID

Government-issued photo ID and Social Security number

Step 1 — Do This First

Get Mortgage Pre-Approval Today

FSBO sellers take pre-approved buyers seriously. LendingTree lets you compare rates from 200+ lenders in minutes — for free.

$1–$70/lead commission earned No credit score impact 3-minute process
Compare Mortgage Rates Free →

Affiliate link — we earn a commission at no cost to you. Disclosure

Affiliate Disclosure: This page contains affiliate links. FirstTimeBuyerHub.com may earn a commission when you click through and complete an action, at no additional cost to you. We only feature partners we'd recommend to a family member. Full disclosure →