How to Get Preapproved for a Mortgage in 2026

Before you start house hunting, your first step should always be getting preapproved for a mortgage. A preapproval letter is a conditional commitment from a lender stating exactly how much they are willing to lend you. In a competitive 2026 housing market, this letter is essential—it tells sellers you have the financial backing to close the deal.

Step 1: Check Your Credit Score & Financial Health

Lenders look closely at your credit history to determine your reliability. Generally, you need a minimum FICO score of 620 for a conventional loan, while FHA loans might accept scores as low as 580 (with a 3.5% down payment). Check your credit report for errors and pay down revolving debt to boost your score ahead of the application.

Step 2: Calculate Your Debt-to-Income (DTI) Ratio

Your Debt-to-Income (DTI) ratio is a crucial metric. It compares your total monthly debt payments (like auto loans, student loans, and credit cards) to your gross monthly income. Most lenders prefer a DTI below 36%, though some loan programs will allow up to 43% or 50% under certain circumstances.

Step 3: Gather Required Documents

To complete the preapproval process, the lender will need to verify your income, assets, and employment. Collect these items in advance:

• Proof of Identity: Government-issued ID and Social Security Number.
• Income Verification: W-2s or 1099s from the last two years, and your most recent pay stubs (typically covering 30 days).
• Asset Verification: Bank statements (last 60 days) and retirement/investment account statements.
• Tax Returns: Your federal tax returns from the past two years.

Step 4: Shop Around and Compare Lenders

Don't just stick with your current bank. Compare rates and terms from multiple mortgage lenders, including big banks, credit unions, and online lenders. Applying with multiple lenders within a short window (e.g., 30 to 45 days) counts as a single inquiry on your credit report, minimizing the impact on your score.

Step 5: Submit the Application

Once you choose a lender, complete their application and submit your documentation. They will perform a "hard pull" on your credit and assess your financial profile to determine your loan limits and interest rate.

After review, you'll receive a preapproval letter—usually valid for 60 to 90 days. Keep this letter handy so your real estate agent can attach it to any offers you make.