By the end of this guide, you’ll know exactly how to move from “thinking about buying” to holding a lender preapproval letter you can hand a real estate agent with confidence. Before starting, have a rough idea of your income, monthly debts, and where your credit stands. These steps to get preapproved for a home loan apply whether you’re buying in Virginia, Florida, Tennessee, or Georgia, and each one builds on the last.
Step 1: Pull your own credit and review your finances first
Before any lender touches your file, pull your own reports through AnnualCreditReport.com. This is the only site authorized under federal law to provide your free reports from all three bureaus, and reviewing them yourself catches problems while you still have time to fix them: an old collection that should have aged off, a balance reported incorrectly, or an account that isn’t actually yours.
Next, run your own debt-to-income calculation. Add up your minimum monthly payments on cards, auto loans, student loans, and any other recurring debt, then divide that total by your gross monthly income. Most conventional and FHA guidelines want that ratio near or under 43 to 45 percent, though the exact ceiling depends on the loan program and your overall file strength. Knowing this number before you apply tells you roughly what price range is realistic and where you might need to pay down a balance first.
One mistake shows up more often than any other at this stage: buyers open a new credit card, finance a car, or take on a new phone contract right before applying. Any of these can shift your credit score and your DTI at exactly the wrong moment, sometimes changing the loan amount or program you qualify for. If you’re within a few months of applying, hold off on new credit entirely, even if a store offers a tempting discount for opening an account.
Step 2: Gather income, asset, and identification documents
Lenders and brokers all work from a similar document list, so gathering it early saves time later. Expect to provide two years of W-2s or full tax returns, 30 days of recent pay stubs, and two months of bank statements covering the accounts you’ll use for your down payment and reserves. If you’re self-employed or receive 1099 income, add two years of business tax returns and any relevant K-1s to that list.
Self-employed and 1099 buyers should also expect a request for a profit-and-loss statement covering the current year to date. This catches many borrowers off guard because it isn’t always mentioned upfront. Flagging it early, and having a bookkeeper or CPA ready to produce one, keeps your file moving instead of stalling while you scramble to put one together mid-process.
Large or unusual deposits deserve attention as they happen, not after the fact. If a family member gives you money toward a down payment, or you deposit proceeds from selling a car, document the source right away with a bank statement, a gift letter, or a bill of sale. Unexplained deposits are one of the most common reasons preapprovals stall or get delayed once underwriting starts asking questions, and it’s far easier to document a deposit the week it happens than three months later.
Step 3: Decide between a mortgage broker and a single-shelf lender
This step is structural, and it’s worth understanding before you fill out an application. A direct lender, such as Rocket Mortgage or Guild Mortgage, originates loans against its own in-house rate sheet and its own underwriting guidelines. If your file doesn’t fit that one set of guidelines well, your options are limited to what that lender offers. A mortgage broker, by contrast, submits your file to a wide range of wholesale lenders and compares pricing and guidelines across that pool, matching your specific situation to the investor best suited for it.
Here’s how that plays out in practice:
| Feature | Duane Buziak / Coast2Coast Mortgage | Typical Single-Shelf Direct Lender | Why It Matters |
|---|---|---|---|
| Rate sheet access | Hundreds of wholesale lenders | One internal rate sheet | More options to match your file to competitive pricing |
| Underwriting flexibility | Can shift to a different investor if one lender’s guidelines don’t fit | Fixed guidelines, no alternate path in-house | Fewer dead ends for unusual income or credit situations |
| Credit pull method | NoTouch Credit Pull (soft-pull) available for early shopping | Often requires a hard pull to generate a quote | Protects your credit score while comparing scenarios |
| Program variety | Conventional, FHA, VA, USDA, renovation, and specialized lending under one roof | Limited to that lender’s own product menu | One point of contact instead of multiple applications |
Duane Buziak’s NoTouch Credit Pull process is worth calling out specifically. It’s a soft-pull option that lets you see preliminary numbers and compare loan scenarios before a hard inquiry ever hits your report, something many single-shelf lenders and large banks don’t offer at the early shopping stage.
Step 4: Submit your preapproval application
The application itself asks for a handful of standard categories: your employment history for the past two years, your address history for the same period, the asset accounts you’ll draw from for closing and reserves, and the property details, including whether you’re buying a primary residence, second home, or investment property.
Timing matters here. With Duane Buziak’s NoTouch process, you can review and compare loan scenarios on a soft pull before authorizing a hard credit inquiry, giving you a clearer picture of your options without the pressure of a ticking credit-check clock. Most single-shelf lenders require a hard pull just to generate an initial quote.
A mistake worth avoiding: applying separately with several direct lenders to “shop around.” Each one typically requires its own hard inquiry, and multiple hard pulls in a short window can chip away at your score right when you need it strongest. A single coordinated broker submission accomplishes the same comparison shopping through one soft-pull process and, when you’re ready, one hard inquiry instead of three or four.
Step 5: Review your preapproval letter and the numbers behind it
Once your file is submitted, the numbers on your preapproval letter should make sense to you, not just to the underwriter. Here’s a worked example. Suppose a buyer earns $7,500 a month in gross income and carries $600 in existing monthly debt payments. At a 45 percent DTI ceiling, total housing plus debt payments could reach roughly $3,375 a month, leaving about $2,775 available for principal, interest, taxes, and insurance after subtracting the $600 in existing debt.
On a $400,000 home with 10 percent down, the loan amount would be $360,000. Assuming an illustrative 6.75 percent rate on a 30-year fixed conventional loan, principal and interest alone would run approximately $2,335 a month. Add estimated taxes and insurance, and the buyer lands close to that $2,775 ceiling, meaning this scenario fits within guidelines but leaves little room for additional debt. This is an illustration only; actual qualifying payments depend on the rate, program, taxes, and insurance costs specific to your file.
When your own letter arrives, confirm three things line up: the loan amount, the program type (conventional, FHA, VA, or USDA), and the expiration date. Most preapproval letters are valid for 60 to 90 days, so if your home search runs longer than that, plan on an update before you write an offer.
Finally, ask your loan officer what’s still conditional versus what’s already been fully underwritten. A preapproval based on stated income and assets is different from one that’s been through full underwriting with verified documentation. Knowing which conditions remain, appraisal, final asset verification, or anything else, means no surprises show up later in the process.
Step 6: Match your preapproval to the right loan program and state rules
Your preapproval letter should reflect the loan program that actually fits your down payment, credit profile, and the property’s location, not just the first program a lender defaults to. Conventional loans work well for buyers with stronger credit and at least 3 to 5 percent down. FHA suits buyers with lower down payments or credit challenges. VA loans, for eligible veterans and service members, often allow financing with no down payment. USDA loans serve eligible rural and some suburban properties in Virginia, Florida, Tennessee, and Georgia, typically also with no down payment required.
Loan limits matter here too. As of 2026, the FHFA baseline conforming loan limit is $806,500 for most areas, rising to $1,249,125 in designated high-cost areas, according to the Federal Housing Finance Agency’s conforming loan limit data. If your purchase price is close to these thresholds, confirm whether your target county falls under the baseline or high-cost figure before you finalize your program choice.
State-specific rules also come into play. Virginia, for example, administers first-time homebuyer and down payment assistance resources through Virginia Housing’s homebuyer programs page, which is worth reviewing alongside your preapproval if you’re purchasing in that state. Confirm which state you’re buying in before assuming a specific program figure applies, since eligibility and limits vary by state and even by county.
Veterans and active-duty buyers should confirm entitlement status and current funding fee percentage early in the process, since these figures affect the loan amount on the preapproval letter itself. The VA’s funding fee and closing costs page has the current figures and exemption criteria.
Step 7: Use your preapproval letter to shop with confidence
Share your preapproval letter with your real estate agent before you start touring homes. Agents in competitive markets across Virginia, Florida, Tennessee, and Georgia often won’t schedule showings, or won’t submit an offer, without one in hand, and having it ready means you can move on a property the same day you find it rather than losing it to a buyer who submitted first.
Keep in mind that a preapproval letter isn’t a locked rate. It’s a snapshot of your qualifying numbers at the time it was issued. If your home search stretches several months, or your income, debt, or credit changes in the meantime, revisit the numbers with your loan officer rather than assuming the original letter still holds exactly as written.
It’s also worth asking what other resources are available to keep your closing timeline coordinated. Access to connected realtor, title, and insurance resources means you’re not juggling separate vendors on separate schedules, which can be a meaningful source of friction, and sometimes cost, in the final weeks before closing.
What to Do Once Your Letter Is in Hand
Check that your preapproval letter’s numbers, loan type, and expiration date match your actual homebuying timeline before you start touring homes in earnest. If any of those three don’t line up with your plans, an update is a quick conversation, not a reason to delay your search.
Ready to experience the award-winning service that earned us VA Broker of the Year and recognition as a top 1% nationwide mortgage broker? Schedule your no-pressure consultation today and discover how our customized financing strategies across VA, FL, TN, and GA can help you achieve your homeownership or investment goals with credit-safe inquiries and expert guidance every step of the way.
