How to Get Pre-Approved for a Mortgage When Buying a Home in Hudson, WI

If you’re thinking about buying a home in Hudson, WI, getting pre-approved for a mortgage should be one of your first steps. In a competitive real estate market like Hudson—or nearby areas like Stillwater or the Twin Cities—a pre-approval letter shows sellers you’re serious and helps you shop with confidence.

Here’s a simple breakdown of the pre-approval process and why it matters.

Step 1: Gather the Right Documents

Before a lender can pre-approve you, they’ll need a clear picture of your financial situation. Getting these documents ready ahead of time will speed up the process and make you a stronger buyer.

Most lenders will ask for:

• Recent pay stubs (last 30 days)

• W-2 forms (last 2 years)

• Bank statements (most recent 2 months)

• Tax returns (last 2 years)

• Proof of additional income (bonuses, side work, etc.)

Pro Tip: If you’re self-employed, expect to provide 1099s and possibly profit-and-loss statements.

Step 2: Review Your Credit Score

Your credit score plays a big role in the mortgage terms you’ll receive. A higher score often means better interest rates, which can save you thousands over time.

Before applying for pre-approval:

• Check your credit score with a trusted site

• Dispute any errors on your credit report

• Pay down high credit card balances

• Hold off on opening new credit lines

Local Insight: In Hudson and the surrounding area, many buyers qualify for great mortgage programs—but only if their credit score meets certain thresholds. A little cleanup goes a long way.

Step 3: Know Your Budget

Once you’re pre-approved, the lender will give you a maximum loan amount. But that doesn’t mean you should borrow the full amount.

When determining your budget, consider:

• Your ideal monthly payment

• Other monthly expenses (student loans, daycare, etc.)

• Lifestyle choices (travel, hobbies, savings goals)

• Estimated taxes and insurance

Remember: Pre-approval helps you shop smarter. It narrows your search to homes in Hudson that fit your lifestyle and financial comfort zone.

Pre-Approval vs. Pre-Qualification: What’s the Difference?

We get this question all the time. Here’s the quick breakdown:

Pre-Qualification:

• Based on self-reported info

• Quick estimate of what you might be able to borrow

• Not verified by documents or credit pull

Pre-Approval:

• Based on verified documents and credit review

• Provides a specific loan amount you’re approved for

• Carries more weight with sellers

Why it matters: In a competitive market like Hudson, WI real estate, pre-approval gives your offer a serious edge.

How to Choose the Right Lender in Hudson, WI

Not all lenders are created equal. Finding the right one can make a huge difference in your buying experience—and potentially your wallet.

What to look for in a mortgage lender:

• Competitive interest rates and fees

• Strong local reputation and experience

• Clear communication and responsiveness

• Loan options that fit your financial situation

Need help? At The Johnson Group, we work with trusted local lenders right here in Hudson and the greater Twin Cities area. We’re happy to connect you with someone who fits your needs.

 Ready to Start House Hunting in Hudson?

Getting pre-approved is your green light to start exploring homes for sale in Hudson, WI, or across the Twin Cities metro. With pre-approval in hand, you’ll be able to:

• Make confident, serious offers

• Stand out in multiple-offer situations

• Save time by focusing on homes within your budget

Whether you're a first-time buyer or looking to move closer to the St. Croix River, we’re here to make your journey stress-free.

Let's Make Your Dream Home Happen

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.