Pre-Approval

Before shopping for a home, getting pre-approved for a mortgage gives you a clear picture of what you can afford and makes your offer more competitive. Pre-approval is a crucial step in the home buying process.

Pre-Approval vs Pre-Qualification

Pre-qualification is an estimate based on self-reported information. Pre-approval is a verified commitment from a lender after reviewing your actual documentation. Pre-approval carries much more weight with sellers.

Documents Needed

  • W-2s for past 2 years
  • Pay stubs (last 30 days)
  • Bank statements (2+ months)
  • Asset statements
  • Employment verification
  • ID and Social Security number
  • Explanation of credit inquiries

The Pre-Approval Process

The lender verifies your information, pulls your credit, and determines how much they're willing to lend. You'll receive a pre-approval letter stating the loan amount and type you're approved for.

Why Pre-Approval Matters

  • Shows sellers you're serious
  • Gives you a clear budget
  • Speeds up the closing process
  • Helps identify credit issues early
  • Makes your offer more competitive

Get pre-approved before starting your home search. It saves time and helps you make informed decisions.