What is the actual first step to buying a home?

Why pre-approval comes before browsing

It is tempting to start with listings. Listings are the fun part. But a home you love that sits outside your approved range is not an opportunity, it is a disappointment with photographs.

A real pre-approval reviews your income documents, credit, and assets up front. You learn your comfortable price, your likely payment, and the cash you need at settlement before emotion enters the room.

What a lender looks at

Four things carry most of the weight. None of them are mysterious, and all of them can be prepared in advance.

• Income: how much, how steady, and how it is documented.
• Credit: the middle of three scores, plus the story behind them.
• Assets: funds for the down payment, closing costs, and reserves.
• Debts: the monthly obligations already on your credit report.

What to gather before you call

Most first conversations move faster with two years of tax returns and W2s, thirty days of pay stubs, and two months of statements for any account you plan to use.

If you are self employed, add your business returns and a year to date profit and loss. If something in your file is unusual, say so early. Unusual is normal, and it is far easier to plan around at the beginning.