All ArticlesBuying Real Estate in SpokaneSpokane Real Estate Tips August 19, 2023

What Can I Afford For A House in Spokane? Understanding The Pre-Approval Process

Nick Briggs, Realtor

Buying a home is exciting, yet it can be tricky. Firstly, many wonder, “How much can I afford for a house in Spokane?” Consequently, this answer guides your search and assists in budgeting. Next, let’s explore how banks determine what you can borrow. Remember, this isn’t financial advice; rather, it’s simply information.

1. What is Mortgage Pre-Approval?

Mortgage pre-approval begins as a process where a lender assesses your financial health. From there, they decide how much they’re willing to lend you for a home. Moreover, it offers a more detailed analysis than a pre-qualification. Consequently, it paints a clearer picture of your borrowing potential

2. Why is Pre-Approval Important?

  • Confidence in Home Search: Knowing your budget helps you target homes within your price range, making the search more efficient.
  • Stronger Negotiation Power: Sellers are more likely to take your offer seriously if they know you’re pre-approved, as it indicates you’re a serious buyer with the financial backing to close the deal.
  • Faster Closing Process: With most of the financial vetting done, the closing process can be smoother and quicker.

3. Factors Lenders Consider for Pre-Approval

  • Credit Score: This number indicates your creditworthiness. A higher score can lead to better mortgage rates.
  • Debt-to-Income Ratio (DTI): Lenders want to ensure you can manage your monthly mortgage payments alongside other debts. A lower DTI is favorable.
  • Employment History: A stable job history indicates a reliable income source.
  • Down Payment: The amount you can put down upfront can influence the loan amount you’re eligible for.
  • Assets and Liabilities: Lenders will evaluate your savings, investments, and other debts.

4. How to Prepare for the Pre-Approval Process

  • Check Your Credit Report: Ensure there are no errors that might lower your score.
  • Gather Necessary Documents: This includes pay stubs, tax returns, bank statements, and any other relevant financial documents.
  • Reduce Debt: If possible, pay down high-interest debts to improve your DTI.
  • Avoid Big Purchases: Hold off on major purchases or taking on new debt until after you’ve secured your mortgage.

5. Remember, Pre-Approval Isn’t a Guarantee

While pre-approval initially gives you a good idea of what you can afford, it’s important to note that it’s not a definitive guarantee that you’ll secure the loan. Firstly, changes in your financial situation can play a role. Additionally, interest rate fluctuations might come into play. Lastly, potential issues with the property itself can influence the final loan approval


Firstly, knowing your mortgage affordability is fundamental to home-buying. Next, by learning the pre-approval process, you can establish clear expectations and bolster your position as a buyer. Before diving into house hunting, it’s essential to consult a lender to grasp your borrowing limit. Lastly, I hope that after perusing this article, you’ll confidently answer the question “What can I afford for a house in Spokane?” with ease.

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This picture shows myself, Nick Briggs. I provide info on the question: "how much can I afford on a house?"

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