How to Get Pre-Approved for a Mortgage in Michigan

A buyer called me last week after losing a home in Rochester Hills. Great house, fair price, motivated sellers. She had everything ready — except a pre-approval letter. By the time she got one from her bank three days later, the sellers had already accepted another offer.

That story isn't unusual. In Oakland County right now, well-priced homes under $400K are still moving in days, not weeks. If you don't have a pre-approval letter in hand before you fall in love with a house, you're playing from behind before you've even started.

Here's everything you actually need to know about getting pre-approved in Michigan — what it means, what I'll look at, and how to get it done fast.

Pre-Approval vs. Pre-Qualification — Know the Difference

These two terms get used interchangeably, but they're not the same thing. In today's Michigan market, the difference matters.

When a listing agent sees a pre-qualification letter, they know it's not verified. When they see a full pre-approval backed by a credit review and income verification, it signals to the seller that this buyer is real and this deal will close.

What I Actually Look At

When you apply for pre-approval, I'm reviewing four things. No surprises here — just the honest breakdown:

1. Credit score and history

For a conventional loan, you generally want a 620 or above. FHA goes down to 580 with 3.5% down, sometimes lower with compensating factors. VA has no hard minimum. Your score affects your rate — every 20-point tier can shift your payment meaningfully on a $300K+ loan. If your score needs work, I'll tell you exactly what to do and how long it'll take.

2. Income and employment

Two years of stable employment history is the standard. W-2 employees are straightforward. Self-employed borrowers need two years of tax returns showing consistent income. I'll look at your debt-to-income ratio (DTI) — most programs want your total monthly debts, including the new mortgage, to stay under 43–45% of your gross monthly income.

3. Assets and down payment

I need to verify you have the funds for your down payment and closing costs. Conventional loans start at 3% down. FHA is 3.5%. VA and USDA are zero down if you qualify. Michigan's MSHDA program can provide up to $10,000 in down payment assistance for eligible buyers — which changes the math completely for first-timers.

4. The property

At the pre-approval stage I'm not evaluating a specific home yet — I'm approving you as a borrower for a price range. The property gets reviewed during underwriting once you're under contract.

What You Need to Have Ready

The faster you get me these documents, the faster I can get you a letter. Here's the list:

That's it. If you have those five things, we can get your pre-approval done fast. I've done same-day letters for buyers who texted me at 8am and had an offer accepted by 6pm. It happens.

How Long Does Pre-Approval Last?

Pre-approval letters are typically valid for 90 days. If you haven't found a home by then, I'll refresh it — which usually just means pulling your credit again and verifying your income documentation is still current. It's quick.

One thing to watch: don't make major financial moves between pre-approval and closing. Opening new credit accounts, buying a car, changing jobs, or moving large amounts of money around can all affect your approval status. If something changes, call me before it becomes a problem.

First-Time Buyers in Michigan: Read This

If this is your first home, there's a program that most buyers in Oakland and Macomb County don't know about: MSHDA's MI Home Loan.

Michigan's state housing agency offers up to $10,000 in down payment assistance for eligible first-time buyers. It's structured as a second mortgage with zero interest and no monthly payments — it only comes due when you sell, refinance, or pay off the first mortgage. For a buyer coming in with 3.5% down on a $300K home, that's the difference between needing $10,500 and needing $500 out of pocket.

Income limits apply by county, and not every lender is approved to originate MSHDA loans. I am. If you think you might qualify, text me and we'll check your eligibility in about ten minutes.

The Bottom Line

Getting pre-approved isn't a big deal. It takes a few hours, requires about five documents, and tells you exactly where you stand. What is a big deal is not having one when the right house comes on the market.

The buyers who win in this market — in Rochester, Troy, Sterling Heights, Lake Orion, wherever you're looking — are the ones who are already pre-approved when something good hits the MLS. They move same day. They write clean offers. They win.

If you're thinking about buying in the next six months, start the pre-approval process now. Even if you're not ready to make an offer tomorrow, knowing your number changes how you shop and what you can realistically plan for.

I'm happy to walk through it with you. No pressure, no sales pitch — just your actual numbers.