Lending
Getting Preapproved for a Mortgage in the Sacramento Region
Prequalified, preapproved and fully underwritten, what each one means, and the documents to gather.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
What is the difference between prequalified and preapproved?
Both words describe a lender's early view of how much it may be willing to lend you. Neither one is a loan offer. The CFPB says (page last reviewed December 5, 2023) that lenders use the two terms differently. Some prequalify you from information you share without checking it, then preapprove you after they verify it. Others use the words the other way around.
So the label matters less than the work behind it. Ask the person writing your letter one plain question: "Did you pull my credit and read my income and asset documents?" If the answer is yes, a seller can lean on that letter with more confidence.
What is a fully underwritten approval?
Some lenders will send your file to an underwriter before you have a home picked out. The underwriter reviews your income, assets and credit the same way they would during a purchase. What's left is usually the property itself: the appraisal, title and insurance.
The CFPB notes that some lenders issue a written commitment that is good for a set time and subject to limited conditions. This takes a little more effort up front. In return, your offer can show a seller that the hardest part of the loan review is already done. Not every lender or loan type offers this, so we tell you which options fit your situation.
Why get preapproved before you look at homes?
A real review tells you what you can afford before you fall for a house. It also gives you time to fix things. The CFPB points out that getting preapproved early can help you find and fix credit report problems before you shop seriously.
It helps your budget, too. A lender's number is the most it might lend, not the payment that feels comfortable to you. Use our mortgage calculator and our Sacramento property tax calculator to test a monthly payment that fits your life. Then tell us that number.
If a lender looks at your file and decides not to issue a letter, the CFPB says it must send you an adverse action notice, even before a formal application. That notice tells you why, so you know what to work on.
Which documents do you need if you earn a paycheck?
For most W-2 employees, lenders commonly ask for:
- Recent pay stubs, usually covering about the last month
- W-2 forms for the last two years
- The last two months of statements for every bank, savings and investment account you'll use. Fannie Mae's Selling Guide (topic B3-4.2-02) says bank statements typically cover the most recent two months.
- A photo ID
- Details on any other income you want counted, like bonus, overtime or commission
- Your landlord's contact information or rent history, if the lender asks
Send full statements, every page, even the blank ones. Missing pages usually mean the lender has to ask again.
Which documents do you need if you're self-employed?
Self-employed income is usually documented with tax returns. Fannie Mae's Selling Guide (topic B3-3.5-01, checked October 22, 2026) says lenders generally need a two-year history of earnings. That is usually shown with your signed personal returns and, in some cases, your business returns for the past two years, with all schedules.
The same topic allows one year of returns in some cases, such as when the business has existed for five years and you've owned at least 25% of it for those five years. Lenders may also ask for:
- A year-to-date profit and loss statement
- Business bank statements
- Proof the business is active, like a license or a CPA letter
If your tax returns show less income than you actually earn because of write-offs, a bank statement loan may be worth comparing. See our bank statement loan page.
Which documents do you need if you're retired?
Retirement income can count toward qualifying. Fannie Mae's Selling Guide (topics B3-3.4-15 and B3-3.4-03, checked October 22, 2026) lists ways to document it:
- Social Security: your SSA award letter, a Form SSA-1099, recent signed tax returns or proof you're receiving it now
- Pension or annuity: an award letter or benefit statement, a bank statement showing the deposits, a signed tax return, or a 1099
- Retirement accounts: recent statements for any IRA, 401(k) or similar account you'll use for the down payment or reserves
Retirees sometimes have lots of savings and modest monthly income. Some loan programs can count income from assets. We look at your whole picture before deciding which loans to compare.
What should you avoid after you're preapproved?
Your approval is based on a snapshot. Keep that snapshot steady until you have the keys. The CFPB advises (page last modified May 21, 2026) against taking on new debt before you buy, including car loans, large credit card purchases and new credit card applications. It says new debt can lower your score and raise the rate lenders offer you.
- Don't open new credit cards or finance furniture, a car or appliances
- Don't move large sums between accounts without keeping a paper trail
- Don't deposit cash you can't document
- Don't co-sign for anyone
- Don't miss a payment on anything, even a small bill
- Tell us before you change jobs or how you're paid
If something changes, call before you act. Most problems are easy to manage when we know first.
How do you start getting preapproved?
Fill out the loan options form and tell us what you're planning and when. Maggie B. Hopkins, a mortgage broker who shops a network of approved lenders, will review it and follow up within 2 hours. You can also call Maggie's cell at (916) 549-3131.
Want to see the whole road ahead? Read how the mortgage process works, then how lenders use credit scores and how debt-to-income works. You're always free to use any lender you choose. Give yourself options.
Frequently Asked Questions
Is a preapproval letter a guarantee that I'll get the loan?
No. The CFPB says neither a prequalification nor a preapproval letter is a loan offer. The loan still depends on the home, the appraisal, final documents and nothing changing in your finances.
Does getting preapproved hurt my credit?
A lender's credit check can have a small effect. The CFPB says multiple credit checks from mortgage lenders within a 45-day window are recorded as a single inquiry, so you can compare lenders without each one counting separately.
How long is a preapproval good for?
It depends on the lender and on how old your documents and credit report are. Pay stubs, bank statements and credit reports all age out over time. Ask your lender when they'll need fresh copies.
Can I get preapproved if I'm self-employed?
Yes. Most lenders document self-employed income with your recent tax returns. If write-offs lower your taxable income a lot, a bank statement loan may also be worth comparing.
Can I use Social Security or a pension to qualify?
Yes, in many cases you can. Fannie Mae's guidelines accept documents like an SSA award letter, an SSA-1099 or a pension benefit statement. The lender verifies the amount you receive now.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Loans are arranged through Maggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307. This is not a commitment to lend. All loans subject to credit approval and property qualification. Equal Housing Lender.
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