How to Get Pre-Approved for a Mortgage in Oregon

Here in Oregon, sellers sometimes choose one offer over another just because of the buyer’s pre-approval letter. I’ve had buyers tell me their offer was turned down not because of price, but because the listing agent didn’t trust their letter. After 25 years as a mortgage broker, here’s how to get pre-approved the right way.

What’s the difference between pre-qualification and pre-approval?

A pre-qualification is a quick estimate based mostly on what you tell someone. No documents are checked. Think of it as a rough guess. A pre-approval means your income, debts, credit, and savings have actually been reviewed. An underwritten approval goes one step further: an underwriter reviews your file before you even make an offer.

Not everyone needs an underwritten approval, but in competitive markets like Portland or Bend, it can really help. For most buyers, a solid pre-approval is the place to start.

Why do Oregon sellers care so much about your pre-approval letter?

Because not all letters are equal, and listing agents know it. With some big online mortgage companies, you can basically print your own letter. You type in rough numbers, and out comes a PDF that no human has ever looked at. I’ve had buyers come to me after an offer was turned down because the agent knew that letter didn’t carry much weight.

When my clients put in an offer and let me know, I call the listing agent. I don’t share personal details, but I explain what I’ve reviewed and how strong the file is. I’ve had listing agents tell a buyer’s agent something like, “We had a similar offer, but after talking with your broker, we knew your financing was going to go smoothly.” Sometimes that call is the difference.

What do lenders look at to pre-approve you?

Every pre-approval comes down to four things: income, credit, debts, and assets.

1. Income

For most people, that means pay stubs and W-2s. If you’re self-employed, it’s usually two years of tax returns. A few things that surprise people:

• Complicated income is often very doable. Restricted stock units, retirement income, and self-employment can take more work, but they’re often workable. For self-employed buyers, I have access to programs that use bank statements instead of tax returns, and I’ve helped plenty of people get approved after someone else told them no.
• Variable hours are averaged. If you work part-time or your hours change week to week, lenders usually average your income over the last two years, not just what you’ve made recently.

2. Credit

With your permission, your credit is pulled and reviewed together with you. (More on soft vs. hard credit checks below.)

3. Debts

Car payments, student loans, minimum credit card payments, and anything else on your credit report, plus obligations like child support or alimony. Groceries, utilities, and phone bills don’t count.

This is the one people worry about most. A lot of buyers start our first conversation by telling me their credit card balances and how nervous they are. Here’s the good news: your balances can affect your credit score, but when a lender figures out what you can afford, they use your minimum monthly payment, not the whole balance. People are always relieved to hear that.

4. Assets

Bank statements, savings, and retirement accounts, plus where your down payment is coming from. You don’t need to be perfect. Nobody is.

What documents do you need to get pre-approved?

Every situation is different, but most buyers start with:

• Recent pay stubs
• W-2s for the last two years
• Tax returns for the last two years (if you’re self-employed or have other income types)
• Recent bank and investment statements
• A photo ID
• A gift letter, if family is helping with your down payment

If you’re retired, have RSUs, or have other income, I’ll tell you exactly what else we need.

Does getting pre-approved hurt your credit?

It depends on where you are, and there are different tools for different situations.

• If you’re just exploring, or you want to know you’re in the right ballpark before gathering documents, I can often start with a soft credit check. It doesn’t affect your score at all. It only looks at one credit bureau, so it doesn’t tell the whole story, but it’s a good place to start.
• When you’re ready to make offers, a full credit pull is done. That’s a hard inquiry, and for most people it’s a small, short-term dip of just a few points. It’s what makes a pre-approval sellers can trust.

Shopping around won’t hurt you. Credit scoring models generally treat multiple mortgage credit checks within a short window (typically 14 to 45 days, depending on the scoring model) as a single inquiry.

How long does pre-approval take, and what does it cost?

The thing that surprises my clients most is how easy it is. My online application takes about 10 to 15 minutes. You upload a few documents, and I do the rest. A lot of the time, once everything is in, you’ll have a letter in your inbox the same day. The consultation and the credit check are both free.

How long is a pre-approval letter good for?

Most pre-approval letters are good for about 90 days. If your search takes longer, your documents just get refreshed. That’s quick and completely normal.

What should you avoid after you’re pre-approved?

Once you’re pre-approved, try not to change anything big. Here’s one I see all the time: you’re buying a new home, so you shop for furniture or even new blinds, and the store offers 0% financing. Sounds like a great deal. But that’s a new credit check and a new debt. The lender sees it, asks what happened, and has to count that new payment in your loan. I’ve seen good approvals turn into real headaches over a couch.

Until you have the keys:

• Don’t open new credit cards or store financing.
• Don’t buy a car on credit.
• Don’t move large amounts of money between accounts without asking first.
• Talk to your mortgage broker before changing jobs or how you’re paid.

If you’re not sure, text me first. That’s what I’m here for.

Should your pre-approval letter show your maximum or your offer price?

It’s your choice, and there are good reasons for both. Some buyers want the letter written for the exact offer price, so the seller doesn’t see how high they can go. Others would rather show they’re approved for more, so the seller knows they aren’t stretching and their financing will hold up even if something small comes up. I walk my clients through both and let them decide.

What are the most common pre-approval mistakes?

1. Money that can’t be traced. Lenders need to see where every dollar came from. Money from family is usually fine; it’s documented as a gift. Cash is different. If you’ve been saving cash at home and deposit it, it can be very hard to use for a home purchase, because lender rules and anti-money-laundering laws make it difficult to prove where it came from. If that’s you, talk to me early.
2. Changing jobs or how you’re paid mid-process. Quitting, switching to commission-only, or cutting your hours can derail things. Even a raise with a new job title can slow things down if it isn’t documented.
3. Waiting too long to send documents. Underwriters can’t approve what they can’t see. If you’re asked for a bank statement, send it that day if you can.

Ready to find out where you stand?

If you’re thinking about buying in the next three to six months, around Portland or anywhere in Oregon, I’d love to do a free pre-approval review with you. We’ll look at your income, your credit, and what price actually feels comfortable for you. No pressure, no obligation. And if you’re just starting to wonder whether buying makes sense, reach out anyway. Those are some of my favorite conversations.