Knowledge Center
Mortgage Pre-Approval
Understanding the pre-approval process and why it's the essential first step in your home buying journey.
The Basics
What is Mortgage Pre-Approval?
Mortgage pre-approval is a lender's conditional commitment to loan you a specific amount based on a thorough review of your financial situation. Unlike pre-qualification, which is based on self-reported information, pre-approval involves verification of your income, assets, and credit history.
A pre-approval letter demonstrates to sellers that you're a serious, qualified buyer who can secure financing. In competitive markets, this can make the difference between winning and losing your dream home.
Why It Matters
Benefits of Pre-Approval
Know Your Budget
Understand exactly how much home you can afford before you start shopping, saving time and avoiding disappointment.
Stronger Offers
Sellers prefer buyers who are pre-approved. It shows you're serious and financially capable of closing the deal.
Faster Closing
Much of the paperwork is already done, which can significantly speed up the closing process when you find your home.
Rate Lock Option
Some lenders allow you to lock in your interest rate during pre-approval, protecting you from rate increases.
The Process
Steps to Get Pre-Approved
Gather Your Documents
1-2 daysCollect pay stubs, W-2s, tax returns, bank statements, and identification documents. Having these ready speeds up the process.
Choose a Lender
1-2 daysResearch lenders, compare rates and fees, and select one that fits your needs. I can provide recommendations based on your situation.
Submit Your Application
30-60 minutesComplete the mortgage application with your chosen lender. You can often do this online, by phone, or in person.
Credit Check & Review
1-3 daysThe lender will pull your credit report and review your financial documents to assess your creditworthiness.
Receive Pre-Approval Letter
Same dayIf approved, you'll receive a pre-approval letter stating the loan amount you qualify for. This is typically valid for 60-90 days.
Know The Difference
Pre-Qualification vs Pre-Approval
Common Questions
Frequently Asked Questions
Does pre-approval guarantee I'll get a mortgage?
No, pre-approval is a conditional commitment. Final approval depends on the property appraisal, title search, and verification that your financial situation hasn't changed significantly.
Will pre-approval affect my credit score?
Yes, pre-approval requires a hard credit inquiry, which may temporarily lower your score by a few points. However, multiple mortgage inquiries within 14-45 days typically count as a single inquiry.
How long does pre-approval last?
Most pre-approval letters are valid for 60-90 days. If it expires before you find a home, you'll need to update your documents and get re-approved.
Can I get pre-approved with bad credit?
Yes, though your options may be limited. FHA loans accept credit scores as low as 500 (with 10% down) or 580 (with 3.5% down). Work with a lender who specializes in credit challenges.
Should I get pre-approved by multiple lenders?
Yes, shopping around is recommended. Compare rates, fees, and terms from at least 2-3 lenders. Just do it within a short timeframe to minimize credit score impact.
Ready to Get Pre-Approved?
I can connect you with trusted lenders and guide you through the pre-approval process. Let's start your home buying journey together.