What pre-approval actually is
If you are wondering how to get pre-approved for a mortgage in Michigan, here is the short version: you give a lender your income, asset and credit information, the lender verifies it, and you get a letter that says how much home you can realistically buy. Most buyers can finish the whole thing in a few days once their documents are in hand, and a good chunk of it happens in a single conversation.
The letter matters because sellers and listing agents in West Michigan expect it. When you make an offer, the seller wants to know that a lender has already looked at your file and believes the loan will close. Without that letter, your offer is a hope. With it, your offer is a plan.
One thing I want to clear up first. The words "pre-qualification" and "pre-approval" get used loosely, and the Consumer Financial Protection Bureau points out that lenders define them differently. A pre-qualification is often based on what you tell the lender, with nothing checked. A pre-approval, the way I do it, means I have pulled your credit, read your pay stubs and bank statements, and run your file through the same underwriting system that will decide your actual loan. That is the version worth having.
Step one: the conversation
Everything starts with a phone call, a text or a short meeting. I ask about your household income, your job history, what you have saved, your monthly debts, and what kind of home and area you have in mind. I also ask the question most people are nervous about: how does your credit look? You do not need a perfect answer. I just need an honest one so we start in the right place.
This conversation is also where we talk about loan programs. A conventional loan, an FHA loan, a VA loan if you have served, a USDA loan in the rural parts of Kent, Newaygo or Montcalm counties, or a MSHDA loan with down payment assistance each have their own rules. Which one fits depends on your credit, your savings, where the home is and your plans for the next several years. I would rather sort that out before you start touring houses than after you fall in love with one.
Step two: the application and the credit pull
Next you complete a loan application. It can be done online, over the phone or at the kitchen table. The application asks for two years of residence history, two years of employment history, your income, your assets and your debts.
With your permission I then pull a tri-merge credit report, which gathers your file from all three credit bureaus. A mortgage credit pull is a hard inquiry, and people worry about it. Here is the reassuring part: according to the CFPB, credit scoring models treat multiple mortgage inquiries inside a short shopping window, generally up to 45 days, as a single inquiry. Shopping lenders for a home loan does not punish you the way opening three store credit cards would.
What I ask you not to do is open any new credit during the process. No new car loan, no furniture financing, no new credit card. Those are separate inquiries and separate debts, and they can change the answer.
Step three: the documents
This is the step that separates a real pre-approval from a guess. Here is the checklist I send to nearly every Michigan buyer. Gather these before we talk and your pre-approval will move fast.
- Pay stubs covering the most recent 30 days, for every borrower.
- W-2 forms for the last two years. If you are self-employed or earn commission, bonus or side income, bring two years of complete federal tax returns with all schedules instead.
- Bank statements for the most recent two months, all pages, for every account you plan to use for your down payment and closing costs. Include the blank pages.
- Photo ID for each borrower.
- Gift letter if a family member is helping with your down payment. I will give you the form, and we will need to document the transfer.
- DD-214 or Certificate of Eligibility if you are using a VA loan.
- Landlord contact information or twelve months of rent history if you are renting now. For some programs, on-time rent can help a thin credit file.
A tip from years of doing this: do not move money around right before you apply. Large deposits that are not payroll have to be explained and sourced. If a relative gave you money for the house, wonderful, but let me tell you how to document it before it lands in your account.
Step four: underwriting review and the letter
Once I have your application, credit and documents, I run your file through automated underwriting. This is the same software that will evaluate your actual loan, so the result means something. It tells us whether the file is likely to be approved, what the maximum purchase price looks like, and what conditions will need to be met.
I also review your documents myself and look for issues like a short job history or a recent collection that we should address now. If something needs fixing, this is the moment to learn about it, not three days before closing.
Then you get your pre-approval letter. It names the loan program, the maximum purchase price the letter supports, and sometimes the down payment type. Many buyers ask me to write the letter for a specific offer amount rather than the maximum, so the seller does not know how much room you have. I am happy to do that; just let me know when you are ready to write an offer.
How long does a pre-approval last?
Most pre-approval letters are good for about 60 to 90 days because that is how long the credit report and documents stay fresh. If your home search runs longer, we update your pay stubs and bank statements and reissue the letter. That is normal and takes very little effort on your part.
Michigan details worth knowing
A few things come up with Michigan buyers specifically.
MSHDA programs have their own steps. MSHDA's MI Home Loan and its down payment assistance options are offered through participating lenders, and MSHDA requires a homebuyer education class for borrowers using its down payment assistance. Income limits, sales price limits and credit requirements apply and they change, so check the current numbers with me before you count on the program. The class is worth taking even if you decide on a different loan.
USDA eligibility is about the address. Plenty of homes in Kent County townships, Newaygo County and Montcalm County sit inside USDA eligible areas, and others a mile away do not. Income limits apply as well. If a no down payment option matters to you, tell me the areas you are considering and I will check them.
Property taxes change at sale in Michigan. When a home sells, the taxable value uncaps, so the seller's current tax bill is often lower than yours will be. I estimate your payment using the uncapped figure so there are no surprises. For your own situation, talk with a tax professional.
Mistakes that slow pre-approval down
- Guessing at your income instead of sending the documents. The letter is only as good as what is behind it.
- Changing jobs mid-process without telling your lender. Some job changes are fine; some are not. Call me first.
- Co-signing a loan for someone else. That debt counts against you.
- Paying off collections without asking. Sometimes it helps, sometimes it hurts your score in the short term. Ask before you pay.
- Waiting until you find the house. Pre-approval before the search puts you in a position to act the day the right home hits the market.
What to do this week
If buying a home in the next few months is on your mind, here is how I would spend this week.
- Pull your own credit reports at the free annual site and read them for errors. Checking your own credit does not affect your score.
- Gather the documents from the checklist above into one folder on your phone or computer.
- Write down your monthly debts and your total savings so you can speak to them clearly.
- Think about the areas and price range you have in mind, and whether anyone will be helping with a gift.
- Read my latest Michigan market update so you know what the rate picture looks like going in.
- Reach out. You can call or text me and we will have the first conversation. If you want to read ahead, my frequently asked questions page covers many of the things buyers ask me next.
Any pre-approval I issue is based on the information verified at the time, and final loan approval depends on the complete application, the property and underwriting review. Getting that letter in hand is still the most useful thing a Michigan buyer can do before touring a home.