Get Pre-Qualified

Why Get Pre-Qualified Before You Start Shopping?

Getting pre-qualified is one of the smartest first steps any home buyer can take — and it costs you nothing. Before you fall in love with a home along the Wasatch Front, knowing your budget gives you the confidence to act quickly when the right property comes along. In Utah’s competitive real estate market, sellers take pre-qualified buyers far more seriously than those without one.

Pre-Qualification vs. Pre-Approval — What’s the Difference?

Pre-Qualification is a quick initial assessment based on your income, assets, and debt. It gives you a general idea of how much you may be able to borrow and costs nothing. It is a great starting point if you are early in the home buying process.

Pre-Approval is a more formal process where a lender verifies your financial information and issues a conditional commitment for a specific loan amount. A pre-approval letter carries significantly more weight with sellers and is strongly recommended before making an offer in today’s market.

What You Will Typically Need

Most lenders will ask for the following when starting the pre-qualification or pre-approval process:

• Recent pay stubs — typically the last 30 days
• W-2 forms or tax returns from the past two years
• Recent bank statements — typically the last two to three months
• Government-issued photo ID
• Information about any current debts — car loans, student loans, credit cards
• Employment history for the past two years

Self-employed buyers will generally need two years of tax returns and a year-to-date profit and loss statement in addition to the above.

How Your Credit Score Affects Your Loan

Your credit score plays a significant role in determining both whether you qualify for a loan and what interest rate you will receive. Generally speaking, a score of 620 or higher is required for most conventional loans, while FHA loans may accept scores as low as 580 with a higher down payment. The higher your score, the better the rate — which can translate to tens of thousands of dollars in savings over the life of a loan. If your score needs work, a good lender can advise you on the fastest ways to improve it before applying.

How Much Down Payment Do You Need?

Down payment requirements vary by loan type. Here is a general overview for Utah buyers:

• Conventional loans — typically 3% to 20% down depending on the loan program and credit profile
• FHA loans — as low as 3.5% down with a qualifying credit score
• VA loans — 0% down for eligible veterans and active military
• USDA loans — 0% down for eligible rural and suburban properties
• Utah Housing Corporation loans — down payment assistance programs available for qualifying first-time buyers in Utah

Your lender can help you identify which loan program best fits your situation and whether you qualify for any down payment assistance.

Ready to Get Started?

We work with trusted mortgage lenders along the Wasatch Front who can walk you through the pre-qualification process quickly and without pressure. Use the contact form below to reach out and we will connect y