The difference between a stressful home search and a confident one? Preparation. When you understand exactly what you can afford, what lenders need to see, and what costs to expect, you'll make better decisions and avoid costly surprises. Go from overwhelmed to in control, from guessing what you can afford to knowing exactly how to win the home you want.
Mortgage Pre-Approval Checklist
Personal Documentation
- Government-issued photo ID (driver’s license or passport)
- Social Security number for credit check
- Proof of residence (utility bill or lease agreement)
Income Verification
- Last 2 years of W-2s or tax returns
- Recent pay stubs (last 30–60 days)
- Employer contact information
- Additional income docs (bonuses, commissions, alimony, rental income)
Financial Records
- 2–3 months of bank statements (checking and savings)
- Investment account statements (stocks, bonds, retirement)
- Gift letter (if receiving down-payment assistance from family)
Debt & Credit Information
- List of current debts (student loans, car loans, credit cards)
- Monthly payment amounts for all obligations
- Bankruptcy or foreclosure documentation (if applicable)
Other Things to Consider
Property Taxes
These vary widely by location. Some states have rates below 0.5%, others exceed 2%. Check your county’s rates for accuracy.
PMI (Private Mortgage Insurance)
Required if your down payment is under 20%. Typically 0.5–1% of your loan amount annually. The good news: PMI drops off once you reach 20% equity.
Maintenance Rule
Budget 1–2% of your home's value each year for repairs and upkeep. A $300K home means $3,000–6,000 annually.
Down Payment Strategies
Traditional Savings
The classic approach. Steady and reliable.
- Automate monthly transfers to a dedicated account
- Use a high-yield savings account (HYSA) for better returns
- Use windfalls wisely (tax refunds, bonuses)
- Timeline: 2–5 years for most buyers
Family Gifts
Loved ones can help. Learn more about how to gift down payment funds.
- Family members can contribute down payment funds
- Requires official “gift letter” for lender
- No repayment expectation allowed
- Must be properly documented
- Family may need to file an IRS gift tax return
First-Time Buyer Programs
Government programs designed for you. Explore top first-time buyer programs.
- FHA loans: as low as 3.5% down
- VA loans: 0% down for veterans
- USDA loans: 0% down for rural areas
- State/local down payment assistance programs
Creative Options
Think outside the traditional box.
- Retirement account loans (401k, IRA)
- Down payment assistance grants
- Employer home-buying programs
- Rent-to-own agreements
- Read more on creative options here.
Compare Popular Loan Options
| Strategy | Down Payment % | Best For |
|---|---|---|
| Conventional | 5–20% | Strong credit, stable income |
| FHA | 3.5% | Lower credit scores |
| VA | 0% | Veterans, active military |
| USDA | 0% | Rural/suburban buyers |
Think Your Credit Isn’t Ready?
Many future homeowners delay reaching out because they assume their credit isn’t “good enough.” The truth? Most people underestimate their position and miss opportunities because of it.
At PrimeStreet, we connect you with agents who understand how credit works in the real world. Whether you're building your score or already well-qualified, your agent can help you:
- Understand how lenders actually view your credit profile.
- Identify fast, realistic ways to strengthen approval odds.
- Explore programs for first-time or credit-rebuilding buyers.
Talking to an agent isn’t a commitment — it’s your first insight into what’s possible. You might be closer to buying than you think.
Credit Score Booster
Build Credit That Opens Doors. If you could do one thing this month to raise your credit score, what would it be? We’ll show you exactly how. Your credit score can save you thousands in interest — or cost you the home you want. Here’s a proven plan to improve it in 30, 60, and 90 days.
30-Day Quick Wins
Expected Gain: +10–30 points
- Week 1: Audit your credit — check all 3 bureaus and dispute errors.
- Week 2: Pay down balances above 30% utilization; don’t close old accounts.
- Week 3: Become an authorized user on a family member’s account.
- Week 4: Set up autopay — on-time payments are 35% of your score.
60-Day Foundation
Expected Gain: +30–60 points
- Pay off your smallest debt completely.
- Request credit limit increases to lower utilization.
- Add rent payments to your credit report.
- Focus on high-interest or maxed-out cards first.
- Avoid new credit applications to limit hard inquiries.
90-Day Transformation
Expected Gain: +60–100 points
- Negotiate “pay-for-delete” on collections.
- Create payment plans for past-due accounts.
- Open a secured card to build new credit history.
- Keep utilization under 10% across all cards.
- Document progress for lender explanations.
Credit Score Myths Debunked
Stress comes from guessing. Confidence comes from clarity.
Lender Letter Templates
Credit is just a snapshot - we’ll help you rewrite your financial story. Some negative marks can be explained. If you had medical debt, job loss, or divorce, write a brief letter of explanation. Many lenders will look past legitimate hardships.
Medical Debt
Download TemplateJob Loss / Unemployment
Download TemplateDivorce
Download TemplateGeneral Hardship
Download TemplateGet Started Today
“Start with the right plan. Find an agent who understands your budget.”
Financing doesn't have to be overwhelming when you have an agent who understands your budget, your goals, and your timeline. We've broken down every step - no spreadsheets, no guessing, no jargon. PrimeStreet agents are equipped with financial tools and resources to guide you through every dollar.
Take your first confident step.
Connect with a PrimeStreet agent who gets your goals.