How to Get Preapproved for a Home Loan

Updated February 2026

Getting preapproved for a home loan is one of the smartest first steps in the home-buying process. It shows sellers that you’re financially qualified and gives you a clear sense of your price range. It also helps you avoid surprises later and makes your offer more competitive. If you’re just starting the home-buying journey, you may also want to read What are the first steps to buying a house? for more context.

Start by Reviewing Your Financial Picture

Before reaching out to a lender, take a moment to understand your current financial situation. Look at your credit score, monthly income, debts, and available savings. You can also check out How much does it cost to buy a home in Cross Plains, WI? for a breakdown of upfront and monthly costs in our market.

Here’s a helpful credit reference from the CFPB:
https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/

Gather the Documents Lenders Need

Once you’re ready, collect the paperwork lenders typically request:

• W-2s

• Recent pay stubs

• Bank statements

• Tax returns (if self-employed)

• Identification

• Retirement/investment account statements

• Debt information

For an early-stage prep checklist, visit:
https://www.consumerfinance.gov/owning-a-home/prepare/

Compare Lenders Instead of Choosing the First One

After gathering your documents, talk to multiple lenders. Rates, fees, and loan programs can vary between local banks, credit unions, and mortgage brokers. For an overview of loan options available to Wisconsin buyers, explore WHEDA programs which may help first-time buyers with down payment assistance.

FHA loan basics from HUD:
https://www.hud.gov/program_offices/housing/fhahistory

Submit Your Application for Preapproval

Next, choose one or more lenders and apply. During this step, your lender verifies your income, employment, assets, and credit history. If you qualify, you receive a preapproval letter showing your approved price range. Most letters are valid for 60–90 days and can be updated.

If you’re considering VA financing, review eligibility here:
https://www.va.gov/housing-assistance/home-loans/

Once you’re preapproved, you’re ready for the fun part: starting your home search.

Avoid Major Financial Changes Until Closing

After preapproval, avoid opening new lines of credit, boosting debt balances, or making large cash deposits. Small changes can impact your loan qualification. General credit guidance from the FTC:
https://www.consumer.ftc.gov/articles/understanding-your-credit

Partner With a Real Estate Agent

With preapproval in hand, you can confidently begin shopping with your real estate agent. An agent helps you identify neighborhoods, evaluate pricing trends, and write strong offers based on your financing strategy.

If you’re buying in Dane County, learn more about the local market and communities we serve.

Why Preapproval Matters

Getting preapproved gives buyers:

• A realistic budget

• A competitive edge

• Faster offer timelines

• Fewer surprises

• More confidence

It’s one of the key milestones in the home-buying roadmap and an expectation in competitive markets.

Common Questions

How long does preapproval take?
Typically 24–72 hours once documents are submitted.

Does preapproval hurt my credit?
It triggers a hard credit inquiry, but mortgage rate shopping is designed to count as a single inquiry within a short window:
https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

Do I need 20% down?
Not necessarily. Many buyers use 3–5% down programs, and some loans allow 0% down.

Final Thoughts

Getting preapproved isn’t complicated. With the right preparation, it can be fast, confidence-boosting, and extremely helpful during your home search. If you’re planning to buy in Cross Plains, Dane County, or the greater Madison area, you can schedule a buyer consultation to talk through your options and get introduced to reputable lenders.