by Daniel Yoon | eXp Realty | Richmond, Virginia
Get pre-approved before you look at a single home. That is the first thing I tell every buyer who calls me. In the Richmond, Virginia market, a pre-approval letter separates serious buyers from window shoppers. Sellers will not even consider your offer without one.
Pre-approval means a lender has verified your income, pulled your credit, reviewed your debt, and confirmed how much they will lend you. It is not a guarantee, but it is a strong signal that you can close. Here is exactly how to get it done.
Pre-Approval vs Pre-Qualification
Pre-qualification: A rough estimate based on what you tell the lender. Takes 10 minutes. Means almost nothing. No verification.
Pre-approval: A verified analysis based on your actual financial documents. Takes 1 to 3 days. Carries real weight with sellers. This is what you need.
What You Need to Apply
- Last 2 years of W-2s or tax returns
- Last 30 days of pay stubs
- Last 2 months of bank statements (all pages)
- Government-issued ID
- Social Security number for credit pull
What Lenders Look At
- Credit score: 620+ for most programs. 580+ for FHA. Higher scores get better rates.
- Debt-to-income ratio: Total monthly debt payments divided by gross monthly income. Lenders want this below 43%, ideally below 36%.
- Employment history: 2 years of steady employment preferred. Job hoppers or recent career changers may need explanation letters.
- Down payment source: Where is the money coming from? Gift funds, savings, or assistance programs all have different documentation requirements.
How Long Pre-Approval Lasts
Most pre-approvals are valid for 60 to 90 days. After that, the lender needs updated documents. Your credit may be re-pulled. If your financial situation changes (new debt, job change, large purchase), tell your lender immediately. Do not buy a car or open new credit cards between pre-approval and closing.
Tips for a Stronger Pre-Approval
- Pay down credit card balances below 30% of your limit before applying
- Do not open new credit accounts in the 6 months before buying
- Save at least 3 months of mortgage payments in reserves
- Get quotes from 3 lenders to compare rates and fees
- Ask about Virginia Housing programs if you are a first-time buyer
FAQs
How long does mortgage pre-approval take?
1 to 3 business days with complete documentation. Some lenders offer same-day pre-approval with electronic verification.
Does pre-approval hurt my credit score?
A pre-approval involves a hard credit inquiry, which may temporarily lower your score by 5 to 10 points. Multiple mortgage inquiries within a 14 to 45 day window count as a single inquiry.
Can I get pre-approved with bad credit in Richmond?
FHA loans accept scores as low as 580 with 3.5% down. Some VA lenders work with scores in the 500s. If your score is below 580, a good lender can create a 3 to 6 month plan to improve it.
Ready to get pre-approved? Call Daniel Yoon at (804) 896-2694. I will connect you with trusted Richmond-area lenders who know Virginia Housing programs and can get you approved quickly.