1. Check Your Credit Score

Your credit score plays a significant role in obtaining a mortgage pre-approval and securing a favorable interest rate. Lenders generally prefer buyers with scores above 620, but higher scores can unlock better rates and terms.

Tip: Request a free credit report from the three major bureaus, Equifax, Experian, and TransUnion, and review it for any errors. Addressing inaccuracies or paying down high balances before applying can improve your chances of approval.

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2. Determine Your Budget

Knowing how much house you can afford prevents disappointment and keeps your search realistic. Consider:

• Monthly income and expenses

• Current debts (student loans, credit cards, car payments)

• Down payment savings

A trusted mortgage lender can help you calculate a comfortable budget and provide a pre-approval letter, which strengthens your offer when you find the right property. For more guidance, check out our first-time home buyers guide.

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3. Save for a Down Payment and Closing Costs

Most conventional loans require a down payment between 3%–20% of the purchase price. In addition, closing costs—which include appraisal fees, title insurance, and taxes—can range from 2%–5% of the loan amount.

Tip: Automate your savings and keep funds separate from your everyday spending accounts. Showing consistent savings behavior can also demonstrate financial stability to lenders. If you’re a current property owner, we also offer tips on leveraging your existing investments.

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4. Get Pre-Approved, Not Just Pre-Qualified

While pre-qualification gives you a rough estimate of what you can afford, pre-approval involves submitting financial documents (income statements, tax returns, debts) to a lender for review. A pre-approval letter:

• Shows sellers you’re serious

• Speeds up the closing process

• Helps you compete in competitive markets

Once approved, you can start browsing our available properties and prepare to submit strong offers.

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5. Limit Major Financial Changes

Once you start the mortgage process, avoid:

• Opening new credit cards

• Making large purchases on credit

• Changing jobs

• Closing existing accounts

These actions can negatively impact your credit score or debt-to-income ratio, potentially jeopardizing approval. For guidance on selling a home or coordinating your finances, our team can help.

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6. Work With a Trusted Real Estate Team

Partnering with experienced professionals like the team at RE Solutions XV, can make all the difference. We guide buyers through every step, from connecting with reliable lenders to negotiating the best deal. 

You can even apply now to get started with us. Our goal is to help you feel confident and prepared throughout the home-buying process.

 

 

Bottom Line

Getting approved as a real estate buyer doesn’t happen by accident; it’s the result of careful planning, smart financial choices, and partnering with the right experts. By following these steps, you’re setting yourself up for success and positioning yourself to make competitive offers with confidence.

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Ready to take the first step? Contact RE Solutions XV today to get pre-approved and start your journey toward your dream home!