5 Steps to Getting Pre-Approved

Pre-qualified vs. pre-approved

A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval means the lender has actually pulled your credit and verified your income and assets, then issued a letter stating how much they're prepared to lend. In Southeast Tennessee and Northwest Georgia, most listing agents expect a pre-approval letter with every offer — and many sellers won't schedule showings for serious buyers without one.

Step 1: Check your credit

Pull your free reports at AnnualCreditReport.com and dispute any errors before you apply. Your score shapes both which loans you qualify for and the rate you'll pay. Common 2026 minimums (LendingTree):

Much of Bradley, Rhea, Polk, and the surrounding counties include USDA-eligible areas — worth asking your lender about if you're buying outside city limits.

Step 2: Know your numbers

Lenders look closely at your debt-to-income ratio (DTI): your total monthly debt payments (including the new house payment) divided by your gross monthly income. Many programs prefer 43% or lower. Add up car loans, student loans, credit card minimums, and child support, and use our mortgage calculator to estimate a comfortable payment. With 30-year rates averaging about 6.95% in mid-September 2026 (Freddie Mac), every $10,000 of loan amount adds roughly $66 a month in principal and interest.

Step 3: Gather your documents

• Government-issued photo ID
• Pay stubs covering the last 30 days
• W-2s (and 1099s if applicable) for the last two years
• Federal tax returns for the last two years — essential if you're self-employed
• Bank and investment statements for the last two months (all pages)
• Explanation and paperwork for any large deposits or gift funds
• For VA loans: your Certificate of Eligibility (COE)

Step 4: Compare lenders

Get Loan Estimates from at least two or three lenders — a local bank or credit union, a mortgage broker, and a national lender is a good mix. Compare the interest rate, APR, lender fees (Section A of the Loan Estimate), and how quickly each can close. Multiple mortgage credit pulls within a short shopping window are generally treated as a single inquiry for scoring purposes. We're happy to share lenders our clients have had good experiences with.

Step 5: Get your letter — and protect it

Once approved, ask for a letter you can tailor to each offer price. Pre-approvals typically expire in 60–90 days. Until closing, don't open new credit cards, finance furniture or a car, change jobs, or move large sums without talking to your lender first — any of these can derail an approval at the last minute.

How this strengthens your offer

A fully underwritten pre-approval, a quick closing timeline, and a lender who will pick up the phone when the listing agent calls can make your offer stand out — even against a slightly higher bid. When you're ready, we'll help you line up the right lender and start touring with confidence.