How to Get Pre-qualified for a Home Loan

Home Loan Pre-Qualification: A First Step Every Homebuyer Should Take

Unless you plan to buy your home or property with cash, you will need to apply for a home loan with a lender. Before you start touring homes in Helena, it's crucial to understand how much you can realistically afford and to show sellers that you are a serious buyer. One of the most important steps in your homebuying journey is getting pre-qualified for a mortgage loan. This simple step helps you determine your buying power, strengthen offers, and set a clear path toward homeownership.

What does “Pre-qualification” mean when it comes to Mortgages?

Mortgage pre-qualification is an early stage in the home financing process where a lender reviews your basic financial information — such as income, assets, employment, and general credit standing — to estimate how much you might be able to borrow. This typically involves a soft credit check and does not hurt your credit score.

Pre-qualification is different from pre-approval, which is a more in-depth review with a hard credit check and documentation. However, pre-qualification is an essential first look at your financial picture and helps you start your home search with confidence.

The Step-by-Step Home Loan Pre-Qualification Process

Here’s how the mortgage pre-qualification process generally works:

1. Gather Your Financial Information

Before meeting with a lender, prepare details like:

• Income (W-2s, pay stubs, tax returns)
  
  

• Monthly debt payments
  
  

• Savings and assets
  
  

• Estimated down payment amount
  
  

• Estimated purchase price range
  
  

This information helps lenders estimate the loan amount and monthly payment you may be eligible for.

2. Contact a Lender

Reach out to one or more lenders to get started. Pre-qualification can often be done online, over the phone, or in person.

3. Soft Credit Inquiry 

Lenders typically run a soft pull of your credit report to estimate your creditworthiness — this does not impact your credit score, but you may want to ask your lender ahead of time how they handle this.

4. Receive a Pre-Qualification Letter

Once the lender reviews your financial information, they issue you a pre-qualification letter. This document:

• States an estimated loan amount
  
  

• Indicates that you may qualify for financing
  
  

• Shows sellers you’ve done your homework
  
  

It’s not a guarantee of financing, but it’s a powerful tool when starting your home search.

Why Home Loan Pre-Qualification is Important Before You Start Looking

Know Your Budget and Price Range

Pre-qualification gives buyers a clear picture of what they can afford, so you don’t waste time looking at homes outside your price range.

Strengthen Your Offer

In a competitive real estate market, sellers want buyers who are financially ready. A pre-qualification letter strengthens your offer by showing you’ve taken proactive steps toward loan approval — a major advantage in multiple-offer situations.

Avoid Surprises Later

Pre-qualification helps you understand potential roadblocks early (credit issues, debt ratios, etc.), so you can address them before your offer is under contract.

Comparison Shop Lenders

Getting pre-qualified with multiple lenders allows you to compare interest rates, loan terms, closing costs, and available programs without impacting your credit, helping you find the best mortgage solution.

Montana Mortgage Lenders

The Montana Board of Housing, through the Montana Department of Commerce, keeps a list of Participating Lenders in the state of Montana. Click here for the list. (updated as of 12/23/25)

Below is a list of trusted Helena mortgage lenders and loan officers you can recommend to your clients. These local lenders can help homebuyers get pre-qualified, explore loan options, and navigate financing in the Helena real estate market:

Helena & East Helena Home Loan Lenders & Mortgage Brokers

Local Mortgage Lenders:

• Evergreen Home Loans Helena

• Union Home Mortgage

• Capital Hill Team powered by Premier Mortgage Resources 

• J.R. McFadden NMLS 1246357 | Major Mortgage

• New American Funding - Greg Hinkle

• One Trust Home Loans

• Clearwater Credit Union

• First Interstate Bank

• Guaranteed Rate - Randy Hoag

• Intrepid Credit Union

• Opportunity Bank

• Stockman Bank

• US Bank

• Valley Bank

Bonus: Programs for First-Time Homebuyers

Montana and local lenders participate in state home loan programs that may include special financing features like lower down payments, income limits, and down payment assistance through the Montana Board of Housing and related initiatives. These programs typically require working with an approved participating lender.

Discussing these options with a local Helena lender can help first-time buyers maximize purchasing power and understand all available programs.

Final Tips for Buyers

• Start early: Contact lenders early in your home search to streamline your buying process.
  
  

• Get organized: Have documentation like tax returns, bank statements, and pay stubs ready.
  
  

• Ask questions: Your lender should explain your options clearly — including loan types, interest rates, and estimated monthly payments. As your Realtor, I can help advise you as well!
  
  

• Work with your Realtor: As a Helena Realtor, I can help you coordinate with lenders to ensure you feel informed and confident.

Ready to buy or sell?

With over 10 years of real estate experience and over 25 years in the financial and legal industries, my wide range of expertise allows me to guide buyers and sellers through a smooth transaction. 

I work in partnership with you to understand your needs and motivations so I can represent your best interests. My experience as a Realtor spans many types of transactions, including new construction, resale properties, condos, townhomes, and single-family homes as well as investment and golf course properties, working with first-time homebuyers, downsizing clients, and relocation buyers.

Contact me today to get started!