Published September 29, 2026

Pre-Approval 101, What First-Time Buyers Need to Know Before Touring Homes

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Written by Will King

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One of the smartest things you can do before touring homes is get fully pre-approved for financing.
A pre-approval helps you understand your buying power, gives you a clearer picture of your monthly payment, and shows sellers that you are prepared to move forward when you find the right property. PLACE recommends obtaining written pre-approval, rather than relying only on a quick prequalification, before seriously shopping for homes. 1

Prequalification vs. pre-approval

These terms are often used interchangeably, but they are not the same.
A prequalification is usually an early estimate based on information you provide to a lender. It can be useful as a starting point, but it may not involve a full review of your financial documents.
A pre-approval is more detailed. Your lender reviews documentation such as income, assets, debts, and credit information to determine the loan amount and program you may qualify for. A written pre-approval letter can strengthen your position when you submit an offer. 1

Documents you may need

Every lender has its own requirements, but buyers are commonly asked to provide items such as:
  • Recent pay stubs
  • Two years of tax returns
  • Bank statements
  • Asset statements, including retirement accounts when applicable
  • Information about debts and monthly obligations
  • Identification and employment details
Gathering these documents early can make the process smoother and help avoid delays later.

Down payment options may be more flexible than you think

Many first-time buyers believe they need a 20% down payment. That is not always the case.
Loan programs can have different down payment requirements. The PLACE buyer consultation guide highlights options that may include VA and USDA programs with 0% down for eligible borrowers, FHA programs with down payments starting around 3.5%, and conventional programs that may start around 3% down. Eligibility, availability, credit requirements, property requirements, and terms vary, so speak directly with a lender about your specific situation. 1
The right loan is not simply the one with the lowest down payment. It is the one that fits your budget, goals, credit profile, and plans for the home.

Protect your financing while you shop

Once you begin the loan process, avoid financial changes without checking with your lender first. That includes changing jobs, opening new credit accounts, financing a vehicle or furniture, moving money between accounts without documentation, making large deposits or withdrawals, or co-signing for someone else. These changes can affect your loan approval. 1

Your next step

Talk with a lender before you fall in love with a home. A clear pre-approval gives you confidence, helps focus your search, and puts you in a stronger position when it is time to make an offer.

Categories

Columbia, Buying in 2026, Buying Guide, First Time Home Buying

Tags

First Time Buying a Home, Guide to Buying a Home, Home Buying Benefits, Chapin, Lake Murray, Home Buying, Irmo, Columbia, SC, Homebuying 2026
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Will King

| The King Group | Keller Williams Realty | PLACE

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