How Mortgage Pre-Approval Works

Mortgage pre-approval is a crucial first step in the home buying process.

Pre-Qualification vs. Pre-Approval

Pre-Qualification: An informal estimate based on self-reported financial information. No credit check.

Pre-Approval: A formal process involving credit check, income verification, and document review. Results in a letter stating how much you can borrow.

Documents You'll Need

• •Pay stubs (last 30 days)
• •W-2s or 1099s (last 2 years)
• •Tax returns (last 2 years)
• •Bank statements (last 2-3 months)
• •Photo ID
• •Employment verification
• •List of debts and assets

The Pre-Approval Process

1. •Choose a lender (shop at least 3)
2. •Submit your application and documents
3. •Lender pulls your credit report
4. •Underwriter reviews your finances
5. •Receive your pre-approval letter

How Long Does Pre-Approval Last?

Typically 60-90 days. If it expires before you find a home, you'll need to reapply.

Tips for a Smooth Pre-Approval

• •Don't open new credit accounts
• •Don't make large purchases
• •Don't change jobs if possible
• •Keep paying all bills on time
• •Have all documents ready

Does Pre-Approval Guarantee a Loan?

No. Final approval depends on the property appraisal, title search, and your financial situation remaining stable through closing.