By The Joan Kelly Group
We get asked about mortgage rates constantly, and the honest answer is that we won't put a specific number in this post, since rates shift often enough that anything we wrote today could be outdated by the time you're reading it. What we can offer instead is a clear picture of how pre-approval actually works, since that process matters just as much as the rate itself. Here's what we think buyers should know before starting that conversation with a lender.
Key Takeaways
- Current mortgage rates change too often to reliably cite in a blog post
- Pre-approval involves real underwriting, unlike a lighter pre-qualification estimate
- Required documents and credit score minimums vary by loan type
- Rate locks typically last 30 to 60 days once you're ready to move forward
Why We Won't Cite a Specific Rate Here
Mortgage rates can shift meaningfully within just a few months, and citing a specific number today risks giving you outdated information by the time you're actually shopping for a loan. Instead, we always recommend checking a current rate directly with a lender or a reliable, regularly updated rate tracker before making any decisions. The mechanics of the pre-approval process itself change far less often, which is why we're focusing there instead.
Why This Approach Serves You Better
- Mortgage rates can shift meaningfully in a matter of months
- A specific rate cited today may already be outdated when you're reading this
- Checking directly with a lender gives you the most current, accurate number
- The pre-approval process itself remains far more stable over time
Pre-Approval vs. Pre-Qualification: A Real Difference
Pre-qualification is a lighter, less verified estimate based on information you self-report, while pre-approval involves a lender actually reviewing your income, assets, credit, and debt through real documentation. This deeper process typically takes anywhere from a day or two up to about a week and a half, depending on the lender and how quickly documents are provided. Getting pre-approved, not just pre-qualified, is what actually signals to a seller that you're a serious, financially ready buyer.
Understanding the Difference
- Pre-qualification relies on self-reported information and a lighter review
- Pre-approval involves actual verification of income, assets, and credit
- The process typically takes a day or two up to around a week and a half
- Sellers generally take a pre-approval far more seriously than a pre-qualification
What Documents You'll Actually Need
Lenders typically ask for W-2s, recent pay stubs, tax returns, and bank statements, along with a valid, photo-based form of identification. If you're currently renting, some lenders may also ask for proof of on-time rent payments and your landlord's contact information. Gathering these documents ahead of time, rather than scrambling once you've found a home, generally makes the whole process move faster.
What to Have Ready
- W-2s, recent pay stubs, and tax returns
- Recent bank statements showing your assets
- A valid, photo-based form of identification
- Proof of on-time rent payments if you're currently renting
Credit Score and Down Payment Minimums by Loan Type
FHA loans generally allow credit scores as low as 580 with a 3.5 percent down payment, and some lenders will go as low as 500 with a larger 10 percent down payment. VA loans don't carry a government-mandated minimum credit score, though most individual lenders still look for a score around 620 or higher. Conventional loans typically fall somewhere in between, with specific requirements varying by lender and overall financial profile.
What to Know About Loan-Specific Requirements
- FHA loans generally accept scores as low as 580 with 3.5 percent down
- Some lenders accept scores as low as 500 with a 10 percent down payment on FHA loans
- VA loans have no government-mandated minimum score, though lenders often look for 620 or higher
- Conventional loan requirements vary meaningfully by lender
Understanding Rate Locks
Once you've chosen a lender, you'll typically have the option to lock in a specific rate, which guarantees that rate will still be available when your loan actually closes. Rate locks generally last somewhere between 30 and 60 days, and if your loan doesn't close before the lock expires, you should expect a rate lock extension fee. Understanding this timeline matters when planning your closing date, especially if there's any chance of delay.
What to Understand About Rate Locks
- Rate locks typically last between 30 and 60 days
- A locked rate protects you from increases before closing
- Loans that don't close before the lock expires may incur an extension fee
- Worth factoring into your timeline if any delays seem possible
FAQs
Why won't you tell us the current mortgage rate?
We'd rather point you toward a current, reliable source than give you a number that could already be outdated. Rates shift often enough that we don't think a blog post is the right place for that specific figure.
Is pre-approval really necessary, or can we just get pre-qualified?
We'd strongly recommend full pre-approval, honestly, especially in a market where cash buyers and well-prepared offers are common. Sellers generally don't take a pre-qualification as seriously as an actual pre-approval.
Do we need perfect credit to get pre-approved?
We'd say not at all. Loan programs like FHA and VA have real flexibility, though the specific requirements depend on the loan type and your overall financial picture.
Contact The Joan Kelly Group Today
Getting pre-approved is one of the most important first steps in buying here, and we're happy to walk you through exactly what to expect. We can also point you toward lenders we trust who work regularly in this market.
