Are you planning on buying a house in 2023? It is important to be prepared and make sure you have everything you need before you start the process. Read below on the top 10 things you need to be pre-approved to buy a house in 2023.

Knowing how much you can afford and having a good credit score are the key factors that will determine your ability to secure a mortgage, get pre approved, and find the home of your dreams. Also, as a first-time homebuyer or an experienced investor, following these tips will help you navigate the home buying process and increase your chances of success.

Be Prepared for your Mortgage Pre-Approval

Here’s a list you can use to make sure you have what you need at hand. 

Personal Identification

The lender will need valid identification to make sure the person they are lending money to is actually who they say it is

Social Security Card

Your Social Security card is another form of ID that lenders will request to confirm your Identity.

Pay Slips

To verify your income and to prove you have a stable job, your pay slips can be used.

Bank Statements

Bank statements are needed when applying for pre-approval because it will show your income and if you can afford the downpayment.

Tax Documents

Potential homebuyers must provide W-2 wage statements and tax returns from the past two years

Investment Account Statements

Your job may not be your only source of income. Also, lenders want to see all of your assets, including investment accounts.

List of Monthly Debts

To show how much money you have and what’s going out, your debt-to-income ratio is used. Moreover, mortgage approval requires a maximum DTI

Rental Information and Landlord Reference

Lender will want to know if a borrower has a history if paying rent on time and how this applies to the mortgage

Gift Letters

If a lode one gifts you with a money to use as a down payment, It is important to have an official letter stating that the money was not a loan

Credit Report

The lender often pulls a credit report to see how you are handling your debt and to show any red flags in your history, like late payments or bankruptcy.


  • A home seller normally asks for a mortgage pre-approval letter before negotiating with a buyer.
  • Pre-approval requires proof of employment, assets, income tax returns, and a qualifying credit score.
  • Mortgage pre-approval letters are typically valid for 60 to 90 days. 
  • Upon pre-approval, the lender will provide the maximum loan amount, which helps set a price range for the home shopper.

Mortgage pre-approval requires a buyer to complete a mortgage application and provide proof of assets, confirmation of income, good credit, employment verification, and important documentation. Additionally, a home buyer gains bargaining power by getting pre-approved for a mortgage. Consequently, they can make a reasonable offer to the seller of a home. Overall, obtaining pre-approval is an essential step in the home buying process and can help you achieve your goal of homeownership.

The Bottom Line

Mortgage pre-approval is an examination of a home buyer’s finances to ensure borrowers will repay their loan. To start the process, potential borrowers complete a mortgage application and provide proof of assets. They also provide confirmation of income, credit report, employment verification, and important documentation. Additionally, these steps are crucial in order to obtain pre-approval. Furthermore, having a mortgage pre-approval letter can make you a more competitive buyer in a crowded real estate market and it can also help you negotiate a better price on the home you want to buy. Finally, obtaining a mortgage pre-approval is an important step in the home buying process, and one that can ultimately help you achieve your goal of homeownership.

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