Real estate agents and lenders recommend that home buyers be pre-approved with a lender before shopping for a home. This way you will have the best information about the price range that you have chosen.


  • With pre-approval, you can determine which loan program best fits your need and which for programs you qualify.
  • You will know exactly how much you can spend. It is no fun to find your ideal home and then realize that you can't afford it.
  • Your monthly payment will be set. This will allow you to budget your money before making this large investment.
  • It shows you what the down payment and closing costs will be.
  • If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which may allow you to afford more home for your money.
  • Sometimes you may be eligible for special buyer incentives, down-payment assistance, etc. These programs come and go, and your lender will be aware of all of them as you discuss your loan.
  • As we make an offer, it shows that we are serious buyers. The sellers will pay much more attention to us.

What does it take to be pre-Approved in Louisville?

  • 2 most recent pay stubs
  • W2s from the last two years.
  • List of assets
  • If self employed, the lender will need 2 years of tax returns.

The lender will pull a credit score report.  Coupled with the above data, they will be able to share with you how much house you can afford.  They will know which loan program (conventional, FHA, VA, USDA, HomePath, etc.) that best suits you. They will talk about how much down payment is needed.  They will be able to inform you of the monthly payments and whether mortgage insurance (PMI, MIP) is required.  They will also give you a closing cost estimate or initial fees worksheet. 
One thing to note here, at this point, your interest rate is not locked down.