Zillow dream-scrolling is a lot more fun when you know what you can actually afford. Plus, getting pre-approved for a mortgage will help you close faster when you find the right home.
Here's how to get pre-approved for a mortgage in Minnesota, step by step.
Step 1: Check Your Credit Report for Errors
Before you apply for pre-approval, go to AnnualCreditReport.com — the only federally authorized site where you can pull your full report from all three bureaus (Equifax, Experian, and TransUnion) for free. It will give you a line-by-line report with every account, inquiry, and notation.
Once you have your report, look for:
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Accounts that don't belong to you (a sign of identity mix-up or fraud)
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Payments incorrectly marked as late or missed
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Duplicate accounts showing the same debt twice
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Outdated information that should have aged off your report
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Balances that don't reflect current payoff amounts
If you find something wrong, dispute it directly with the bureau reporting the error. Each has an online dispute process, and bureaus are required to investigate within 30 days. Document everything and follow up. And don't worry, pulling your own report is a soft inquiry — it has no impact on your score.
Step 2: Compare Mortgage Lenders 
Not all lenders are the same. Shop around before you commit. Even just talking to two or three lenders can save you significant money and frustration down the road.
When comparing lenders, look at:
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Interest rates and Annual Percentage Rate (APR). The interest rate is what you pay to borrow. The APR includes fees and other costs, so it gives you a more complete picture of what the loan actually costs. Compare APR, not just the headline rate.
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Loan types. Conventional, FHA, VA, and USDA loans each have different eligibility requirements, down payment minimums, and mortgage insurance rules. Not every lender offers every type.
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Down payment requirements. These vary by lender and loan type. At City & County Credit Union, down payments start as low as 3% — and 1% for public service employees.
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Fees. Origination fees, underwriting fees, and closing costs add up. Ask each lender for a Loan Estimate, which breaks down all costs in a standardized format so you can compare apples to apples.
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Local underwriting. Lenders who underwrite locally tend to move faster and have more flexibility than those routing decisions through a national processing center.
Lenders will also have different thresholds for what they'll approve. Most conventional loans require a minimum credit score of 620, though scores 740 or higher unlock meaningfully better rates.
On the debt side, lenders calculate your debt-to-income ratio (DTI) by dividing your total monthly debt payments by your gross monthly income. Most look for a DTI of 43% or below, with many preferring closer to 36%. Knowing your score and your DTI before you start comparing lenders gives you a clearer sense of which options are actually available to you.
Step 3: Gather Your Financial Verification Documents
Pre-approval requires documentation. Most lenders will ask for:
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Two years of W-2s or tax returns (self-employed borrowers will need additional documentation)
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Recent pay stubs covering the last 30 days
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Two to three months of bank and investment account statements
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A valid government-issued ID
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Information on any existing debts (student loans, car payments, credit cards)
Having these organized and ready to go means fewer delays once you're ready to move.
Step 4: Submit Your Official Pre-Approval Application 
Once your documents are ready, you'll submit a formal mortgage application. This triggers a hard credit inquiry, which may cause a small, temporary dip in your score — but multiple mortgage inquiries within a short window (typically 14–45 days) are usually treated as a single inquiry by the credit bureaus.
Your lender will review your income, assets, credit history, and employment to determine how much they're willing to lend.
Step 5: Review Your Official Pre-Approval Letter
Your pre-approval letter states the loan amount, loan type, and the terms your lender is prepared to offer based on your financial profile. Bring this letter to every showing. Sellers and their agents want to see it before they take an offer seriously.
A few things to confirm: Is the loan amount realistic for the homes you're considering? What's the interest rate, and is it locked or floating? What's the expiration date?
One thing worth thinking through before you start shopping: Your pre-approval amount is the maximum a lender is willing to lend you — not a target.
Buying at the top of your approval leaves very little room for everything else that comes with homeownership: property taxes, insurance, maintenance, repairs, and the occasional expensive surprise. A good rule of thumb is to shop below your approved amount and treat the difference as a buffer.
A CCCU mortgage expert can help you work through what a comfortable payment actually looks like for your situation — not just what you qualify for on paper.
Step 6: Maintain Your Financial Status Until Closing
Pre-approval is a serious, documented assessment based on real numbers. But it's not a guarantee. A few things can change between pre-approval and closing:
Your financial situation shifts. New debt, a job change, or a large unexplained cash deposit can alter your terms or put your approval at risk.
The property doesn't qualify. Pre-approval is based on you as a borrower. The home still has to pass appraisal, and if the appraised value comes in below the purchase price, your loan amount may need to change. Certain loan types — FHA especially — have property condition requirements.
Your rate wasn't locked. If your rate isn't locked at pre-approval, market movement between now and closing can change your actual rate and monthly payment.
Your letter expires. Most pre-approval letters are valid for 60–90 days. If your search runs longer, you may need to reapply, and your financial picture or the rate environment may look different the second time around.
Between approval and closing, lenders will re-verify your financial situation. Any significant change can put your loan at risk. It helps to stay in communication with your loan officer throughout the home search. If your timeline shifts or you find a home outside your original price range, they can tell you quickly how that affects your approval.
Get Pre-Approved for a Mortgage in Minnesota
City & County Credit Union has mortgage options for first-time buyers, move-up buyers, and everyone in between. We're here to help you find the right fit and get into the right home.
