Your Guide to a Home Mortgage Pre-Approval

Getting pre-approved for a home mortgage is the first step in the homebuying journey. It provides you with a clear understanding of your monthly payment, cash to close, allows your real estate agent to schedule home showings, strengthens your offer to sellers and streamlines the final approval process. Unlike pre-qualification, which is an informal estimate, pre-approval involves a thorough verification of your financial information and a hard credit check, resulting in a more accurate loan amount estimate.

Why Should You Get Pre-Approved?

  • Set a Realistic Budget: Know exactly how much you can afford, focusing your home search on properties within your price range based on your monthly payment and cash to close.
  • Become a Serious Buyer: A pre-approval letter signals to real estate agents and sellers that you are a credible buyer with the financial means to close a deal, which is a significant edge in a competitive market.
  • Speed Up the Process: Since much of your documentation is vetted upfront, the time to close on a home after an offer is accepted is often reduced.
  • Identify Potential Issues Early: The process can uncover credit or approval concerns that you can address before making an offer.

Step-by-Step Pre-Approval Process

  1. Reach Out: Please reach out to us via phone or email to discuss the home and mortgage options you are looking for.
  2. Apply for your mortgage pre-approval on the website or by the link we send directly to you via email.
  3. Gather Necessary Documents: Collect all required paperwork to document your identity, income, and assets, and securely upload them to your application portal.
  4. Pre-Approval Review: We will review your application within 24 hours of completing your application and submitting your documents.
  5. Home Mortgage Worksheet & Pre-Approval Letter: Once we have completed our review of your pre-approval application, we will email you a pre-approval letter and home mortgage worksheet.
  6. Customization: A follow-up phone call to make any changes to your ideal payment, cash to close, mortgage type, and answer any questions.

Required Documents Checklist

Having these documents ready will help expedite your application:

  • Pay Stub: A copy of the most recent pay stub from your current employer.
  • W-2: Most recent year W-2.
  • Bank Statement: A copy of your most recent one-month bank statement for the checking/savings/investment account you plan on using for down payment and closing costs.
  • Photo ID: Copy of your driver's license or state-issued ID.

*If Self-Employed:

  • Tax Return: A copy of your most recent year's personal income tax return and or business return, depending on your business entity type.

*If Retired:

  • Retirement Income: Once we have completed our review of your pre-approval application, we will email you a pre-approval letter and home mortgage worksheet.
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What to Avoid After Pre-Approval

To ensure your final mortgage application goes smoothly, avoid significant financial changes after receiving pre-approval:

  • Do not take on new debt (e.g., buying a new car or furniture).
  • Do not make large, unexplained cash deposits into your bank accounts.
  • Do not change jobs or quit your job.
  • Continue to pay all bills on time to maintain your credit score.

If you have any questions during the pre-approval process, maintain open communication with your mortgage loan advisor and your real estate agent.

ARE YOU READY TO GET STARTED

ON A REFINANCE OR PURCHASE LOAN?

GET PRE-APPROVED NOW