Getting Mortgage-Ready: Credit, Documents & Pre-Approval

The best time to talk to a lender is before you fall in love with a house. A pre-approval tells you what you can comfortably afford, shows sellers you are serious and gives you time to fix small problems before they turn into delays in escrow. This article covers what lenders look at in 2026 and how to prepare, including for the kinds of income that are common here.

Pre-qualification vs pre-approval

• Pre-qualification is a quick estimate based on what you tell a lender. It is a useful starting point but carries little weight with a seller.
• Pre-approval means the lender has pulled your credit and reviewed your income and asset documents, often with an automated underwriting system. It is conditional, since the property still has to appraise and check out, but it is what sellers want to see with an offer.

Ask for a pre-approval, and ask the lender what conditions are still open.

Your credit

Lenders pull reports from all three national credit bureaus. For conventional loans sold to Fannie Mae and Freddie Mac, lenders can now use either the classic FICO score or VantageScore 4.0. As of September 2026, every approved lender may use VantageScore 4.0, and the three-bureau report is still required. A newer model, FICO 10T, has been approved but is not yet in use for these loans.

The minimum score you need depends on the loan program and the lender. Fannie Mae dropped its fixed 620 minimum for loans run through its automated system in November 2025 and now looks at the whole file instead. Individual lenders and mortgage insurers often still set their own minimums, and FHA, VA and USDA loans have their own rules. The practical point is the same: a higher score usually means a better rate and lower mortgage insurance.

What helps:

• Pay every bill on time. Payment history is the largest factor in most scoring models.
• Keep card balances low compared with your limits.
• Check your reports for errors. You can get free reports from each bureau at AnnualCreditReport.com and dispute mistakes directly with the bureau.
• Do not close old accounts just before applying. It can shorten your history and raise your utilization.

Do not rock the boat after you apply

From application to closing, your lender may re-check your credit and your employment right up to the last few days. Until you have the keys:

• Do not open new credit cards or finance a car, furniture or a snowmobile.
• Do not change jobs without talking to your lender first.
• Do not move large sums between accounts or make large cash deposits you cannot document.
• Do not co-sign for anyone.

A new payment can change your debt-to-income ratio enough to undo an approval.

The documents you will need

Income that needs extra paperwork

A lot of our buyers do not have a simple W-2 job, and that is fine. It just takes more documentation, so start early.

• Self-employed and small-business owners. Lenders usually look at two years of personal and business tax returns and average your income after business deductions. If you write off a lot, your qualifying income may be lower than you expect. A profit-and-loss statement and business bank statements may also be requested.
• Seasonal workers. Work tied to the ski season, summer tourism, forestry, firefighting or agriculture can count, generally when you can show a history of it, often two years, and a reasonable expectation that it will continue. Gaps between seasons are normal if they follow the same pattern each year.
• Retirees. Social Security, pensions and regular retirement account withdrawals can all count. Some lenders can also qualify you based on your assets. Bring award letters and recent statements.
• Remote workers moving here. If you are keeping a job based elsewhere, your lender will want to confirm the job continues after the move.

Your down payment and gift funds

Lenders need to see where your down payment and closing costs are coming from and that the money has been in your accounts for a while. Large deposits that do not match your pay will need a paper trail.

If a family member is helping, the lender will typically want a signed gift letter stating the amount and that it does not need to be repaid, plus proof of the transfer from the giver's account to yours or to escrow. Each loan program has rules about who can give and how much of the down payment can be a gift, so ask your lender before the money moves.

If you are a first-time buyer, you may qualify for down payment help. See home loans for Siskiyou County buyers for the state's programs.

Choosing a lender

You can choose among a local bank or credit union, a mortgage broker who can shop several lenders, or a national online lender. Each has strengths. Whoever you pick, a few questions are especially worth asking in Siskiyou County:

• Have you closed loans on rural property with a private well and septic, or on acreage?
• How do you handle a home heated mainly by a wood stove?
• Do you offer USDA, VA and CalHFA loans?
• How long are your appraisals taking in this county right now?

Compare at least two or three Loan Estimates. Lenders must give you one within three business days of receiving your application, and the standard format makes rates, points and fees easy to compare side by side.

Be wary of anyone who pressures you to misstate income, promises approval before seeing your documents or asks for large upfront fees. You can check a mortgage lender's or loan originator's license on the NMLS Consumer Access website.

We do not recommend specific lenders on our website, but we are happy to talk about what has worked for buyers in situations like yours.

Next steps

Once you have a pre-approval in hand, you are ready to shop with confidence. Read our step-by-step guide to buying in Siskiyou County, start a property search, or contact us to talk it through.

This article is general information, not lending or financial advice. Talk to a licensed loan professional about your situation.

Sources

• FHFA: Credit Scores
• Fannie Mae: Credit Score Models and Reports Initiative
• Fannie Mae: Desktop Underwriter credit risk assessment updates
• CFPB: Loan Estimate explainer
• AnnualCreditReport.com
• NMLS Consumer Access