Updated November 2026
Every week I talk to people who have found a house online they love and want to see it this weekend. I get it. But the single best thing you can do before you start touring is get pre-approved for a mortgage. Here is why, and how to do it.
For the full buying journey, see my first-time home buyer guide.
Pre-Qualified vs. Pre-Approved
These two terms get used interchangeably, but they are not the same.
Pre-qualification is usually a quick estimate based on information you tell the lender. It is a helpful starting point.
Pre-approval generally means the lender has reviewed your documents and pulled your credit. It carries more weight with sellers because the lender has actually looked at your finances.
Different lenders use these terms a little differently, so ask your lender exactly what their letter means.
Why Pre-Approval Matters Before You Tour
You will know your real budget
It is easy to fall for a house that is outside your comfort zone. A pre-approval keeps your search focused on homes that work for you, and it helps you see what your monthly payment might look like at different prices.
Sellers take your offer seriously
In the Sioux Empire, a pre-approval letter is a normal part of a complete offer. When a seller is comparing offers, a buyer who is already pre-approved looks prepared and lower risk.
You can move quickly
Good homes can go fast. If you are already pre-approved, we can write an offer the same day you see a house instead of scrambling for paperwork.
It surfaces surprises early
If there is something on your credit report you did not know about, it is much better to find out now than after you are under contract.
What Lenders Usually Ask For
Every lender has their own checklist, but expect to gather some version of:
Recent pay stubs and W-2s, or tax returns if you are self-employed
Bank and investment account statements
Photo ID
Information about any current debts, like car loans or student loans
Permission to pull your credit
If applicable, documentation for gift funds, child support, or other income
Having these ready makes the process faster.
Choosing a Loan Program
Conventional, FHA, VA and USDA loans each have their own requirements for down payment, credit and property type. Some buyers also qualify for state programs. The South Dakota Housing Development Authority offers programs for eligible homebuyers, and its website is the best place to read current guidelines.
I am not a lender, so I always point buyers to a licensed loan officer to compare options. I am glad to share a few local names, and you are welcome to work with anyone you choose. It is smart to compare more than one.
Tips While You Are Pre-Approved
Avoid big new debts. Hold off on financing a car or furniture until after closing.
Do not change jobs without talking to your lender first.
Keep your documents handy. Lenders often ask for updated statements before closing.
Watch the expiration date. Pre-approval letters are usually valid for a limited time.
Ask about rate locks. Your lender can explain when and how you can lock a rate.
How I Use Your Pre-Approval
Once you have your letter, we can tailor your search to homes in your range across Sioux Falls, Brandon, Harrisburg, Tea and beyond. When it is time to write an offer, I will often ask your lender for a letter that matches the offer price, so the seller is not seeing your top number.
Let's Get You Ready
If you want help thinking through your budget or need a few lender names to start with, I am here. Visit my buyers page to see how I work with buyers, or check out my neighborhood guides while you get your paperwork together.
Call or text me at 605.999.3522 or email tyler@amystockberger.com.
Tyler Stunes, Amy Stockberger Real Estate. This post is general information and not lending advice. Please talk with a licensed lender about your specific situation.
Sources
CFPB, "What is the difference between a prequalification letter and a preapproval letter?": https://www.consumerfinance.gov/ask-cfpb/whats-the-difference-between-a-prequalification-letter-and-a-preapproval-letter-en-127/
South Dakota Housing Development Authority, homebuyer programs: https://www.sdhousing.org
Photo by Scott Graham on Unsplash. Photo by Towfiqu barbhuiya on Unsplash. Photo from Pexels.