Affordability remains a top concern for home buyers, and many are trying to understand their financing earlier in the process, long before they are ready to make an offer. With today’s competitive markets and shifting household budgets, the first step of buying a home has become more complex than simply browsing listings.
Zillow Home Loans has developed several updates to give buyers clearer information at the start of their journey. These improvements are designed to help buyers understand what they can afford, what their rate and loan options are, and how quickly they can act when they find a home they love.
Why early financing matters
More buyers want clarity about their budget before touring homes, especially in markets where properties move quickly. Early-stage financial tools have become increasingly important as shoppers try to make more informed decisions from the beginning.
BuyAbility: The home search personalized to your budget
Before buyers move into formal financing, many want a clearer sense of their affordability. Zillow’s BuyAbilitySM tool, powered by Zillow Home Loans, helps shoppers understand in real time the range of home prices and monthly payments that fit their financial situation.
Home shoppers enter a few key details, such as income, credit score, monthly debts, down payment savings and preferred monthly payment. In seconds, BuyAbility provides two numbers that set expectations early — both a shopper’s target home price, which reflects their preferred monthly payment, and their maximum home price, reflecting the maximum buying power they may qualify for. Seeing these numbers together helps buyers weigh trade-offs and stay grounded financially as they explore neighborhoods and types of homes.
Listings on Zillow are labeled to show how each home aligns with these affordability estimates, making it easier to see which options fit comfortably within a shopper’s budget and which might stretch possibilities. More than 3 million people have enrolled in BuyAbility since its launch, reflecting the demand for clearer affordability guidance. All features are available nationwide across Zillow’s website and mobile apps.
Verified pre-approval: An easier way to show you’re ready to buy
Once buyers understand their overall affordability, the next question is often “Am I actually approved for that amount?” Zillow Home Loans’ verified pre-approval helps answer that question and gives buyers confidence when they are ready to make an offer. The pre-approval feature, introduced as part of Zillow’s fall product launch, is designed to give buyers a clearer and more reliable view of their borrowing power early in the shopping process.
Unlike a basic pre-qualification, which relies solely on self-reported information, a verified pre-approval goes further by securely reviewing income and asset documents through a guided digital flow. It starts with a soft credit check, so buyers can be verified with no impact to their credit score — and the entire online application only takes about 15 minutes.
- A buyer starts their application online by answering a few questions about their goals and finances. Zillow Home Loans then runs a soft credit check, which does not affect their credit score.
- The buyer will also upload income and asset documents through a guided digital flow, with step-by-step prompts and explanations designed to help first-time buyers understand what’s being asked and why.
- A loan officer from Zillow Home Loans then reviews the information, answers questions and confirms the buyer’s borrowing power.
- Once the review is complete, the buyer receives a verified pre-approval letter (good for 90 days) from Zillow Home Loans, which they can use with their agent and sellers to show they are financially ready to make an offer.
A more transparent rates experience
Zillow Home Loans has also launched a new mortgage rates page that focuses on transparency. Mortgage rates fluctuate daily, and even small changes can significantly affect a buyer’s monthly payment. The new page highlights the latest interest rates and the annual percentage rate (APR) available for various loan types, allowing shoppers to compare their options before starting an application. Because Zillow Home Loans offers competitive rates alongside a range of loan options, the updated page helps buyers see how those offerings stack up against other lenders they may be considering.
The goal is to make rate shopping easier at a time when buyers are closely monitoring affordability.
Where Zillow Home Loans fits in
Although many consumers know Zillow primarily as a home-search platform, its affiliate Zillow Home Loans operates as a direct mortgage lender and has done so for several years. The lending side of the business provides conventional, FHA, VA and other loan options, and supports buyers through the process step-by-step, from pre-approval through closing.
For consumers, the value of this integration is continuity — the ability to research homes, track affordability, compare rates, begin a verified pre-approval and fund their mortgage in the same ecosystem. It’s part of a broader trend toward unifying the home-shopping and -financing experience, which historically has required buyers to navigate multiple platforms and timelines.
What these updates mean for buyers right now
For anyone thinking about buying a home in the next year, these tools may help answer the biggest question they have at the beginning of their search: What can I realistically afford?
A few key takeaways:
- Getting financial clarity earlier can help buyers avoid delays later.
- Verified pre-approval is increasingly expected in fast-moving markets.
- Transparent rate comparison is essential when affordability is tight.
These updates reflect a shift in how buyers approach the early part of the journey — and how digital tools are adapting to meet them where they are on that journey.