How to Get Pre-Approved for a Mortgage This Year
If buying a home is on your list of goals this year, getting pre-approved for a mortgage is a crucial first step. A pre-approval doesn’t just help you understand your budget—it also shows sellers you’re a serious buyer. At Embry Group Real Estate, we’ve guided countless homebuyers in Huntsville, Alabama, through this process, and we’re here to help you too.
1. Understand What Pre-Approval Means
A mortgage pre-approval is a letter from a lender that estimates how much you can borrow based on your financial situation. It’s not the same as pre-qualification (which is a quick, less detailed assessment). Pre-approval is a more thorough process and carries more weight with sellers.
At Embry Group Real Estate, we know the Huntsville market moves fast. Having that pre-approval in hand ensures you can act quickly when you find the perfect home.
2. Check Your Credit Score
Your credit score plays a big role in determining your loan options and interest rates. Take some time to review your credit report, address any inaccuracies, and aim to improve your score if needed.
Lenders typically prefer scores of 620 or higher, but don’t let a lower score discourage you. Many programs, including first-time buyer incentives, offer flexibility.
3. Gather Your Documents
Lenders will need to see proof of your financial stability. Be prepared to provide:
- Proof of income (pay stubs, W-2s, or tax returns)
- Bank statements
- Identification
- Employment verification
If you’re unsure about what’s required, our team at Embry Group Real Estate can connect you with experienced lenders in the Huntsville area who will guide you through the process.
4. Calculate Your Budget
While a lender will determine how much you can borrow, it’s just as important to think about how much you’re comfortable spending. Factor in costs like property taxes, homeowner’s insurance, and maintenance when setting your budget.
Our knowledgeable agents at Embry Group Real Estate can help you find homes that fit your financial goals without compromising your wish list.
5. Shop for a Lender
Not all lenders are created equal. Compare interest rates, fees, and customer reviews to find one that meets your needs. Don’t hesitate to ask questions or negotiate terms—this is a big decision!
At Embry Group Real Estate, we’ve built relationships with trusted local lenders in Huntsville, Alabama, and can recommend professionals who will make the process as smooth as possible.
6. Submit Your Application
Once you’ve chosen a lender, complete the pre-approval application and submit the required documents. In most cases, you’ll receive your pre-approval letter within a few days.
This letter will outline the loan amount you qualify for and is often valid for 60–90 days. Having this document gives you the confidence to house-hunt knowing exactly where you stand financially.
Why Pre-Approval Matters in Huntsville’s Real Estate Market
Huntsville is a growing hotspot for homebuyers, with a thriving economy and strong demand for properties. A pre-approval letter can give you an edge in this competitive market by showing sellers you’re ready to move forward.
At Embry Group Real Estate, we leverage our deep understanding of the local market to guide clients toward successful outcomes. We know what it takes to navigate Huntsville’s dynamic real estate scene, and we’re here to ensure you’re set up for success.
Let Embry Group Real Estate Help You Every Step of the Way
Getting pre-approved is just the beginning of your home-buying journey. At Embry Group Real Estate, we’re more than just a team of Realtors—we’re your partners, dedicated to making the process seamless and enjoyable.
Ready to start the path toward your dream home? Contact Embry Group Real Estate today, and let’s turn your homeownership dreams into reality in Huntsville, Alabama!